A £380 million government grant has been given to Agratas, the company building a battery factory in Somerset, which will supply battery cells for Jaguar Land Rover.

Agratas’ project will accelerate domestic battery production in the UK and support around 4,200 direct jobs, as well as thousands more in the supply chain and unlock 300 apprenticeships.

This will be backed by a specialised battery manufacturing training unit to meet the skills needs of Agratas’ gigafactory and the wider battery sector.

Business Secretary Peter Kyle announced the grant on a visit to the Agratas gigafactory in Somerset.

Earl Wiggins, Vice President of Manufacturing Operations, UK for Agratas said: "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."

The steel framework for the battery factory is made using 100% British steel. Once fully operational, the Somerset facility is expected to generate approximately £43 billion in economic value over a 25 year period.