Tata to partner with startups for UK battery plant advancement

Tata Sons is in talks with multiple startups to gather technical expertise in its UK battery plant, set to commence mass production in 2026.

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Tata Sons is in talks with multiple startups to gather technical expertise for its £4 billion ($5.1 billion) UK battery plant, set to commence mass production in 2026. P.B. Balaji, CFO, Tata Motors Group,  noted that startups at the forefront of technology offer appealing opportunities for collaboration. 

Tata’s battery plant aims to supply cells for over 500,000 vehicles annually and seeks partnerships spanning the entire value chain, from cell chemistry to manufacturing and industrialization. The partnerships might encompass joint ventures, knowledge-sharing, experimentation, and licensing agreements. Tata is engaged in discussions with firms involved in different stages of the value chain and will announce its decisions soon.

Tata’s initiative aligns with other automakers like Mercedes-Benz, Stellantis, and Nissan, who have partnered with established battery manufacturers to enhance Europe’s battery supply. While Volkswagen is developing substantial capacity in the region, challenges lie in finding skilled labour, equipment, and critical minerals.

Jaguar Land Rover and Tata Motors are anchor customers for Tata’s battery plant, set to deliver 40 gigawatt hours of batteries starting in 2026. JLR plans to invest £15 billion in EVs and autonomous features over five years. 

Tata intends to fund the project through equity, debt, and equipment financing, ensuring a balanced approach to maintaining financial stability. Securing a cost-efficient and continuous green power supply was Tata’s primary UK demand, leading to government adjustments in taxes for competitive pricing.