The new factory – which is expected to be in Somerset – will provide almost half of the UK’s battery production needed by 2030 and will be Tata Group’s first gigafactory outside India.

It will produce  batteries for Tata-owned Jaguar Land Rover as well as other manufacturers in the UK and Europe.

Production at the new gigafactory is due to start in 2026.

Mr N Chandrasekaran, Chairman, Tata Sons, said: “The Tata Group is deeply committed to a sustainable future across our business.

“Today, I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK. Our multi-billion-pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, JLR.

“With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.

“I also want to thank His Majesty’s Government, which has worked so closely with us to enable this investment.”