JLR faces battery supply delays after Somerset factory contractor change
11 reported3 unconfirmed
Jaguar Land Rover may face delays in receiving electric car batteries from a £5.2bn government-backed factory in Somerset after construction problems. The Agratas factory in Bridgwater, Somerset, is intended to supply batteries for JLR’s new electric models, with both companies owned by Indian conglomerate Tata. Agratas terminated its main construction contractor, Sir Robert McAlpine, and replaced it with Tonroe Group Ltd, giving only three weeks’ notice. The factory’s start date has been pushed back from an initial 2026 target to 2027, and an internal target of January 2028 is also likely to be missed. Construction costs are expected to exceed the £800m budget by at least £500m, according to a person with knowledge of the project. Several parts of the project are behind schedule, including the substation, ring road, and building milestones. Delays could affect JLR’s ability to meet UK electric car sales targets, and JLR executives have expressed doubts about hitting higher targets.
What’s reported
The Agratas factory in Bridgwater, Somerset, is a £5.2bn government-backed project.
The UK government promised £380m in subsidies for the plant in April.
Agratas terminated its main construction contractor, Sir Robert McAlpine, and replaced it with Tonroe Group Ltd.
The factory’s start date was initially 2026, then pushed to 2027; an internal target of January 2028 is also likely to be missed.
Construction budget is about £800m, but actual cost is likely to exceed that by at least £500m.
SRM billed about £400m under a temporary arrangement without a contract.
TClarke, another contractor, left in March amid reports of a “strained relationship”.
Several parts of the project are behind schedule, including the substation, ring road, and building milestones.
Senior staff turnover at Agratas includes departures of its head of process engineering and vice-president of global manufacturing engineering.
JLR chief executive PB Balaji said in November: “We are running against the clock on this one.”
JLR executives have doubts about hitting higher ZEV mandate targets, potentially leaving them exposed to fines.
Open questions
Whether the new contractor, Tonroe Group Ltd, can meet the demanding requirements and timeline.
The exact impact of delays on JLR’s electric vehicle production and compliance with ZEV mandate targets.
Whether the UK government will further adjust the ZEV mandate in response to industry concerns.
Key figures
PB Balaji, JLR chief executive
Agratas spokesperson (unnamed)
Sir Robert McAlpine spokesperson (unnamed)
Sources: The Guardian
