The government has announced a £380m grant to support the building of the £4bn Agratas car battery gigafactory in Somerset.

Agratas, Tata Group’s global battery business, is developing the site in Bridgwater, recently completing the steel frame for the facility - delivered by Agratas’ construction delivery partner, Sir Robert McAlpine, in collaboration with steel contractor Severfield and the integrated design and engineering team at Stantec.

Construction work initially began on the multi-billion-pound project in 2024 and, once complete, it will be the largest of its kind in the UK. It is set to play a crucial role in advancing clean technology and sustainable energy, producing battery cells for automotive and energy storage solutions.

It will generate around £43bn worth of economic growth over a 25-year period when the facility is in full operation.

The site will not only support 4,200 direct jobs but thousands more in the supply chain, as well as unlock 300 apprenticeships - backed by a specialised battery manufacturing training unit to meet the skills needs of Agratas’ gigafactory and the wider battery sector.

The government has taken action to ensure battery manufacturers, auto firms and SMEs rooted in communities across Britain benefit from major financial support - keeping the country a leading hub for business, investment, and jobs in a volatile global environment.

As part of the government UK’s Modern Industrial Strategy, 4,200 jobs have been secured following over £700m of investment in the advanced manufacturing sector. Business secretary, Peter Kyle, announced the £380m grant during a visit to the Somerset site.

He said: “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country - helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.

“In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond. That is what sets us apart from the rest and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”

Earl Wiggins, vice president of manufacturing operations UK for Agratas, added: “We welcome the UK Government’s investment as we build a battery manufacturing facility that will play a vital role in delivering net zero and strengthening the UK’s position as a global leader in battery manufacturing.

“This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR (Jaguar Land Rover). Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”

The latest Quarterly Update reveals that since the launch of the Modern Industrial Strategy over £360bn of private investment has been secured across its key sectors, supporting up to 120,000 jobs. Alongside this, the government is cutting electricity costs for energy-intensive manufacturers, reducing unnecessary planning delays and overhauling regulation that holds back our most ambitious businesses.

Government is injecting £47m worth of support for key R&D battery projects through the Battery Innovation Programme, helping to create skilled jobs, a stronger supply chain and position the UK as a globally competitive destination for battery manufacturing.

Earlier this year Costain was appointed to design and build a new junction on the M5 motorway in Somerset, which will give critical access to the Agratas site.

Junction 22A is being constructed between Burnham-On-Sea and Bridgwater and will provide access to the Gravity Smart Campus where the £4bn gigafactory is being developed.