Tata’s foray into large-scale battery production aligns with wider industry trends, as global automakers shift towards electric vehicles amid stringent emission targets.
Agratas Energy Storage Solutions Pvt., a wholly owned unit of
Tata Sons Pvt., has signed a £750 million ($990.79 million) bridge loan with a syndicate of about 15 international banks to fund the construction of Britain’s largest battery manufacturing plant, according to individuals familiar with the matter. The two-year loan, one of the three largest foreign currency borrowings by an Indian company in 2025 so far, has been priced at a spread over the Sterling Overnight Index Average (SONIA). Disbursement of funds is currently underway.
The loan agreement, finalised earlier this month, highlights a growing appetite among Indian companies for foreign-currency loans, which have surged by 23 per cent year-on-year to reach $6.6 billion as of April, based on data compiled by
Bloomberg. The surge comes despite ongoing volatility in global markets amid rising trade barriers and tariff concerns.
Agratas did not immediately respond to requests for comment, but in a company release last year, it stated that its upcoming facility in the United Kingdom would be a key enabler of the nation’s transition to electric mobility. Once fully operational in the early 2030s, the factory is expected to supply nearly 50 per cent of the battery capacity required by the UK’s automotive sector.
The gigafactory, expected to be based in Somerset, is part of Tata Group’s £4 billion commitment to EV battery manufacturing in the UK. The initiative has received backing from the UK government as part of its efforts to reduce reliance on foreign battery suppliers and support homegrown manufacturing.
Tata’s expansion into large-scale battery production corresponds with broader trends across the industry as automakers globally move to electric vehicles as the emission targets become more stringent. With facilities planned in India and the UK, Agratas will have an important role in the future of energy storage for EV’s. The financial backing from global banks further demonstrates investor confidence in Tata and the future of the EV ecosystem in Britain.
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