Jaguar Land Rover could face battery supply wait after Agratas factory changes

Tata-owned Agratas is building a huge plant in Somerset but changed its main contractor last week

Car giant Jaguar Land Rover could face delays receiving its first deliveries of electric car batteries from a government-backed factory in Somerset if the plant’s opening date is pushed back.

Battery maker Agratas confirmed last week it had “parted ways” with its main builder, Sir Robert McAlpine (SRM), and replaced it with Tonroe Group – a privately owned business based in Buckinghamshire – instead.

Agratas, which is owned by Indian conglomerate Tata, is currently building a £5.2bn plant on a site near Bridgwater. It will supply electric batteries to JLR as well as Tata Motors once operational.

When Tata first announced plans for its UK plant in 2023, it was targeting a 2026 launch. On Monday, the company insisted the start date for production was still expected to be late 2027 amid reports it could be pushed back to 2028.

It also refused to reveal the final estimated price-tag for the project after the Guardian reported at the weekend that it could exceed its original £800m construction budget by at least £500m.

A spokesperson for Agratas said: “As the project has progressed, we have determined that a different construction delivery model is needed to support the next phase of our development.

“Following a review of the project’s requirements, we have decided to transition to a new construction partner. We thank our existing construction partner for their support to date.

“This change reflects the evolving needs of the project, positioning us to deliver the next phase with the capability and focus required to meet our objectives safely, efficiently and on schedule.”

In April, the government promised some £380m in subsidies for the Agratas factory, which is based at the Gravity Smart Campus – a 616-acre enterprise zone in Somerset aimed at cleantech businesses. The project is widely regarded as key for Britain’s automotive sector moving towards electrification – and away from fossil fuels.

The plant is expected to generate up to 4,200 jobs once all phases are fully operational, while also unlocking 300 local apprenticeships.

But delays to the start of factory production could prove problematic for JLR, which will depend on the plant for batteries for its vehicles, including the electric Range Rover.

JLR declined to comment on Monday when contacted by Business Live.

It comes just days after JLR announced plans to focus on wealthy North American buyers as it bids for ‘double digit’ revenue growth and tweaks its electric vehicle plans.

The West Midlands based group, which also has a large factory at Halewood in Merseyside, has accelerated its push into the electric vehicle market in recent years, but its chief executive PB Balaji has said there is “no way” it would phase out petrol vehicles entirely as they are still in demand particularly in the US and the Middle East.