Tata Sons Pvt., through its subsidiary Agratas Energy Storage Solutions Pvt., has signed a £750 million ($990.79 million) bridge loan agreement to fund the construction of Britain’s largest battery manufacturing facility. The deal, finalized earlier this month, involves a consortium of 15 international banks and is among the top three foreign currency loans secured by an Indian company in 2025.
The upcoming gigafactory, expected to be located in Somerset, will play a pivotal role in the UK’s transition to electric mobility. Once operational by the early 2030s, the facility is projected to supply nearly 50% of the battery capacity required by the UK’s automotive sector. This initiative aligns with Tata Group’s £4 billion commitment to electric vehicle (EV) battery manufacturing in the UK.
The loan is priced at a spread over the Sterling Overnight Index Average (SONIA), reflecting investor confidence in Tata’s capabilities and the long-term viability of the EV ecosystem. The project has received backing from the UK government, which aims to reduce reliance on foreign battery suppliers and bolster domestic manufacturing.
Agratas Energy Storage Solutions, which develops battery cells with factories in India and the UK, is poised to play a crucial role in advancing energy storage solutions for EVs. This strategic move underscores Tata’s commitment to innovation and sustainability in the global automotive industry.
