9:17 am, April 10, 2026
The government has announced that £700m of taxpayer funding has been assigned to boosting EV production in the UK – with more than half of the cash going on JLR’s new Somerset gigafactory.
The measures include spending on training staff, major research and development projects and smaller battery innovation projects, in a move that ministers say will create a ‘thriving sector in the UK for decades to come’.
The news was confirmed by business secretary Peter Kyle, who said that the investment could allow automotive firms to operate with ‘stability and confidence’.
Of the £700m of taxpayer grants and support, the majority – £380m – has been assigned to ongoing work on JLR’s car battery plant in Somerset.
The landmark project was announced by the carmaker back in 2023 with the brand set to pour billions into development.
It was rumoured at the time that the then-Tory government had agreed to offer millions of pounds of support to the development, in order to secure the site for Britain, amid talks of it being built in Spain instead.
Labour has now confirmed what that support will look like, with building now well underway by Agratas – a construction firm that shares the same owner as JLR.
Speaking at the Bridgewater site, Kyle said: ‘In an unstable world, our modern industrial strategy is providing investors with the stability and confidence they need to plan not just for the next year but for the next ten years and beyond.
‘It will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.’
Of the remaining money, £90m is being provided to both JLR and Nissan to support EV research and development (R&D).
Elsewhere, The Times reports that £100m has been assigned to ‘tooling-up and training staff in the future electric vehicle supply chain’.
There will also be an additional £47m for R&D in other smaller battery innovation projects, with other funding on offer to help smaller firms adopt digital technologies, artificial intelligence and robotics.
Ministers also want to spend money on providing skills training in sixth forms and higher education, in order to secure the long-term security of the industry.
Writing for The Times, business secretary Kyle added that ‘Britain is done hesitating on the future of automotive’.
Competition for automotive investment is intensifying at speed, with major economies committing vast sums to secure manufacturing, batteries and supply chains for the long term. Against that backdrop, certainty and stability are decisive,’ he said.
‘So, we are going further than previous governments to make big commitments to British industry, so we can support a thriving private sector that is better protected to deliver the jobs and opportunities people need.
‘That is why delivering our modern industrial strategy matters so much.
‘By setting a clear, long-term direction — backing British manufacturing, strengthening supply chains and supporting the transition to electric — it gives investors and industry the confidence to commit capital, create jobs and build here in the UK.
‘In a volatile world, policy certainty is not a slogan; it is a competitive advantage.’
Pictured (via PA Images): Peter Kyle on a visit to the site of the upcoming JLR gigafactory in Somerset yesterday (Apr 9).
