Referral of the proposed subsidy to Agratas Limited by the Department of Business and Trade
Source: gov.uk (2025-12-08)

The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department of Business and Trade (DBT) concerning its proposed subsidy to Agratas Limited.

Administrative timetable

Request from DBT

5 December 2025: The SAU has accepted a request for a report from DBT concerning its proposed subsidy to Agratas Limited (Agratas) for a gigafactory in Somerset. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of DBT’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by DBT

DBT is proposing to award Agratas a capital grant of up to £380 million, to enable the investment in the construction of an electric vehicle battery factory (gigafactory) in Somerset by 2035. The subsidy will be given from the DRIVE35 Automotive Transformation Fund and secures a private capital investment from Agratas totalling approximately £5 billion.

The key policy objective of this subsidy is to mitigate under-investment in the UK’s electric vehicle battery market. The investment represents a targeted intervention to address a critical gap in the UK’s industrial capabilities and help secure the future of UK automotive manufacturing in the transition to electric vehicles.

Agratas is a subsidiary of Tata Sons Private Ltd, and designs, develops, and manufactures battery cells. The gigafactory near Bridgwater in Somerset will have an expected capacity of approximately 40GWh, making Agratas the largest battery manufacturer in the UK. It will supply Jaguar Land Rover, but may in future also supply other car manufacturers, helping meet a major share of the projected demand from domestic automotive manufacturers by 2035.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning DBT’s proposed subsidy to Agratas Limited, then please send your comments before the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to us at xxx@xxx.xx (mailto:xxx@xxx.xx) copying the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx).

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- SAU project team: xxx@xxx.xx (mailto:xxx@xxx.xx)
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)