Somerset site 'eyed for multi-billion pound gigafactory'

If the deal goes through batteries for Jaguar Land Rover would be built at the site in Somerset

A deal to build a multi-billion pound electric car battery factory in the UK is understood to be close to completion.

The BBC understands the gigafactory for Jaguar Land Rover (JLR) would be built at Gravity business park, in Somerset.

Up to 9,000 jobs would be created at the Bridgwater site, close to the M5.

Talks between the British government and JLR owner Tata are believed to be at an advanced stage after offers of incentives by Chancellor Jeremy Hunt.

West of England Metro Mayor Dan Norris said "swift action is needed to seal the deal" after it was reported in The Times that Somerset faces competition from Europe to be the factory's home.

Tata is considering whether to build its battery plant in the UK or Spain, but is said to be looking at settling in the UK after subsidies and financial incentives from the government.

Mr Norris said he had previously held face-to-face meetings last year with Jaguar Land Rover, whose electric vehicle batteries will be produced at the plant if the deal is confirmed.

The gigafactory would be built at the Gravity business park near Bridgwater

He said he was keen to welcome the company to the region and that the Gravity site was "super convenient with Bristol Port on the doorstep".

"We need an effective UK industrial strategy to ensure we benefit from the huge opportunities of net-zero. We have a site that's shovel-ready so let's now seal that deal," he added.

Gigafactories are being built across the world to meet predicted a huge increase in demand for the batteries as countries start to ban petrol and diesel engines.

The UK government is under pressure from car-makers to increase the capacity of battery production in Britain, amid fears car-making plants may leave the UK.

Earlier this week Stellantis, owner of Vauxhall, Peugeot, Citroen and Fiat, warned it may have to close UK factories if the government does not renegotiate the Brexit deal.

The company, one of the world's biggest carmakers, had committed to making electric vehicles in the UK, but said its pledge was now under threat.

It warned it could face tariffs of 10% on exports to the EU because of rules on where parts are sourced from.

Analysis by Simon Jack, BBC Business Editor

There is growing optimism Jaguar Land Rover owner Tata group will choose Somerset as the site for a new multi-billion pound electric vehicle battery plant.

However, sources within government caution that it is not a certainty.

Tata is also considering a site in Spain and government officials say they are not aware of any final decision.

The Chancellor of the Exchequer this week acknowledged the urgency to secure battery manufacturing in the UK after the BBC revealed that Peugeot Citroen parent firm Stellantis had told MPs they would not be able to comply with new rules requiring 45% of a car's value to be sourced within the UK or the EU.

Other manufacturers have raised similar concerns and the EU automotive trade body also said the regulations would need to be amended or postponed, as EU car firms are still sourcing most of their batteries from Asia while they build out their own facilities.

The chancellor told business leaders at the British Chambers of Commerce to "watch this space" and while Treasury insiders say they do not recognise a reported figure of £500m in subsidies to land the plant, they admitted significant incentives in the hundreds of millions were on the table.

Tata is also the owner of several steel plants in the UK including Port Talbot in South Wales and there are ongoing negotiations over hundreds of millions in subsidies to upgrade and safeguard the future of those plants.