Talks over £1bn car factory on knife-edge

URGENT discussions are occurring at the highest levels in Government amid a frantic race against time to secure a deal to build a gigantic £1 billion electric car factory in Somerset.

Rivian, a US EV giant recently valued at $80bn (£58bn), is considering a smart campus called Gravity in Puriton, near Bridgwater, as a base for its first factory outside America, it is understood.

The proposed factory would be the largest single building in the UK if it is built, and the deal would be the most significant car deal in the UK since the 1980s, a source close to the discussions has revealed, creating up to

40,000 direct and indirect jobs.

However, it is understood the US carmaker, backed by huge international firms like Amazon and Ford, is also considering two sites within the EU.

Talks for the UK factory are said to be “on a knife-edge” as Rivian has filed for an IPO in the United States, with a secured European site being a high priority for the electric vehicle manufacturer ahead of a planned flotation on the stock market in the autumn.

It is understood discussions are now taking place at the highest levels of UK Government with Prime Minister Boris Johnson and Kwasi Kwarteng, secretary of state for business, energy and industrial strategy, heavily involved.

It is likely Mr Johnson would be eager to get the deal over the line to demonstrate his “levelling up” and “build back better” agendas post-pandemic, as well as helping to facilitate tens of thousands of new jobs in an environmentally friendly sector.

In March, Mr Kwarteng revealed he believes Somerset “has the manufacturing skill and competence to be able to sustain an excellent gigafactory”. It is believed a delegation from Rivian will visit Somerset next week.

A report from Reuters in late July indicated Rivian was ready to spend more than £1bn on its first European production plant.

A spokesman for the UK Government has said it is “working hard to attract inward investment into the UK to accelerate the growth of new industries and create jobs”, but added that it “does not comment on speculation about individual investments”.

Gravity CEO Martin Bellamy said: “We have been working in lockstep with the Government on various large-scale opportunities.”

He believes Gravity is the “only site in the UK” immediately available for a large electric vehicle manufacturer to begin building a factory. He says this is due to its size, the transport infrastructure and the fact the location is “shovel ready”, and work could begin as soon as a deal is struck.