Gigafactory in doubt as JLR eyes northern plant
Doubt now cast over major car battery plant in the Midlands
PLANS to build Britain’s biggest factory in the West Midlands have been thrown into doubt after reports it could go to the North East instead.
The proposed gigafactory, which was expected to create 6,000 jobs, had been earmarked for Coventry, near the heart of the Midland motor industry.
West Midlands mayor Andy Street is backing plans for the plant which would make batteries for the next generation of electric vehicles.
Delivering it was the top pledge in his manifesto, during last year’s mayoral elections.
Midlands-based carmaker Jaguar Land Rover (JLR), which has plants in Birmingham and Solihull, is expected to be the factory’s biggest customer.
But it has now emerged that JLR is considering a deal which would mean batteries are manufactured at the site of a former steel plant in Redcar, Teesside.
The Financial Times reports that JLR is in discussions with a firm called Envision AESC about supplying batteries for its Range Rover and Land Rover electric models.
AESC already makes batteries for Nissan, and is spending £450 million on a gigafactory near Nissan’s Sunderland plant.
If it does the deal with JLR then a second gigafactory will be needed – but it would be in Teesside.
It would be a huge blow for the West Midlands. A potential gigafactory site has been identified, at Coventry Airport, and supporters of the project, including the airport and Coventry City Council, now say it could employ 6,000 workers directly, and support thousands more jobs in the supply chain.
The plant has already received planning permission.
The North East has already secured two gigafactories – the AESC plant in Sunderland, and another run by a firm called Britishvolt at Blyth, in Northumberland.
But West Midlands sources say there is no need to panic and stress that JLR has not made a decision.
They said that even if JLR does not buy its batteries from the Midlands, there are other customers out there.
And they point out that the proposed West Midlands factory has already received planning permission.
Highlighting the importance of the gigafactory plan to the region earlier this year, Mr Street said: “From securing the future of our region’s automotive industry and the huge economic and job creation that would bring, to helping protect our planet from the climate change emergency, a West Midlands Gigafactory would be a complete gamechanger for our region - and we are making it happen.”
The Midlands gigafactory plan is backed by local authorities across the West Midlands as well as Warwick University, and is expected to receive Government support with funding of tens of millions of pounds, or more, coming from the Treasury.
Jaguar Land Rover (JLR) was understood to be closely involved in the project, although the carmaker’s role has not been publicly confirmed.
It would be the UK’s largest single industrial facility, covering the same area as 74 full-size football pitches, employing 6,000 workers directly, and supporting thousands more jobs in the supply chain. It is also expected to play a vital role supporting carmakers in the region and across the UK, who will need a reliable supplier of batteries as they switch to production of electric vehicles.