The UK government has unveiled a £380m grant to support the construction of one of Europe’s largest battery gigafactories.
The funding forms part of a wider £700m investment package targeting advanced manufacturing.
“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,” said Business Secretary Peter Kyle.
The gigafactory will be constructed for Agratas, a global battery business, in Somerset and is expected to support around 4,200 jobs.
The site will be constructed using 100% British steel and is expected to generate approximately £43bn in economic value over 25 years once fully operational.
It will produce battery cells for Jaguar Land Rover, underlining the growing integration between automotive original equipment manufacturers (OEMs) and vertically aligned battery manufacturing.
Gigafactories are inherently reliant on sophisticated cleanroom infrastructure to ensure battery cell quality, safety and performance.
The Agratas facility will require tightly controlled environments for electrode production, cell assembly and electrolyte handling, processes highly sensitive to particulate and moisture contamination.
As such, the project represents a major expansion of large-scale cleanroom capacity within the UK’s industrial base.
Alongside direct employment, the development will support supply chain growth and specialist skills, including 300 apprenticeships linked to a dedicated battery manufacturing training facility.
The announcement also includes £47m for battery R&D through the Battery Innovation Programme and £190m for automotive sector support via DRIVE35, which was built to anchor future vehicle production.
Specifically, suppliers in the North East and West Midlands will be able to capitalise on £100m worth of DRIVE35 grant funding to help transition towards EV manufacturing, intended to put Britain on track to become a clean energy superpower.
The UK government wants to ensure that battery manufacturers, auto firms and SMEs rooted in communities across Britain benefit from major financial support, and that the UK remains a leading hub for business, investment and jobs.
The expansion of gigafactory capacity is expected to drive demand for advanced HVAC systems, contamination monitoring, and modular cleanroom construction solutions across the UK.
The government said the investment builds on more than £360bn in private sector commitments secured through its Modern Industrial Strategy, positioning advanced manufacturing as a central pillar of long-term economic growth.