Battery manufacturers, auto firms and other advanced manufacturing SMEs across Britain will benefit from financial support which focuses on supporting the sector’s growth.  

The UK Modern Industrial Strategy is guiding the investment which is set to directly create 4,200 jobs, with many more supported across the broader supply chain.

Business Secretary Pete Kyle, announced the update at Agratas (battery manufacturers) site in Somerset. Agratas is one of the businesses set to benefit most from the investment as the government have confirmed they will provide the business with a £380 million grant to support the development of their gigafactory – one of the largest in Europe.

The investment is hoped to have a positive knock on effect for the UK, with materials and construction supporting UK suppliers across the supply chain. Furthermore, the Agratas investment is hoped to reduce reliance on overseas manufacturers and support job creation. 

It is estimated that this could contribute £43 billion of economic growth over the next 25 years, once the factory is up and running.

£47 million worth of support has been assigned to key R&D battery projects, auto businesses will secure £190 million to ensure the industry remains globally competitive, and startups and well-established firms including Nissan and Jaguar Land Rover have been awarded £90 million in DRIVE35 funding to accelerate innovation.

Other key focuses include EV manufacturing, clean energy, AI and robotics. 

Business Secretary Peter Kyle 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.”

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Mike Hawes, The Society of Motor Manufacturers and Traders (SMMT) Chief Executive said: “Recent global events have highlighted the need for resilient supply chains, making this new investment in the sector both timely and important. The UK has a highly skilled and innovative automotive industry, but long‑term competitiveness depends on a policy framework that encourages investment.

“The modern Industrial Strategy provides that forward‑looking support, and today’s announcement demonstrates strong government backing for one of the UK’s most vital industries.”

Since its launch, the Modern Industrial Strategy is said to have driven over £360 billion of private investment across its key sectors, supporting up to 120,000 jobs. In addition to funding, the government is cutting electricity costs for energy-intensive manufacturers, reducing unnecessary planning delays and overhauling regulation that inhibits the sector – all of which is set to drive economic prosperity across the UK.