Coventry receives £35M grant to support new gigafactory

Coventry City Council has been offered up to £35 million in funding to support the development of a new gigafactory within the Coventry and Warwick Gigapark investment zone. This proposed West Midlands Gigafactory, one of four sites within the zone, is slated to become the UK’s Centre of Electrification. It aims to lead advancements in battery technology and manufacturing, contributing to a cleaner, more sustainable future for the nation.

Pending funding approval, an initial £23 million would be allocated for highways and infrastructure improvements necessary to prepare the site for a battery manufacturer and its supporting supply chain.

City councillors revealed last October that they had engaged in discussions with several prominent manufacturers in Asia, including Tata Group. However, Tata has since decided to establish its new £4 billion facility in Somerset instead.

Once a deal is finalised, the development of the gigafactory is expected to draw up to £2.5 billion in inward investment. This significant financial influx is projected to create approximately 6,000 highly skilled direct jobs, with thousands more opportunities arising across the broader supply chain. This venture not only promises substantial economic growth but also strengthens the local and national job markets.

Cllr Jim O’Boyle, cabinet member for jobs, regeneration and climate change, said: “Coventry is the historical home of the automotive industry in the UK, where much of the cutting-edge technology that defined the global car industry last century was created here in our city.

“Now, as we stand at the dawn of a new electric age, we fully intend for Coventry to be very front of the green industrial revolution.

“The West Midlands Gigafactory site is the only site in the UK that sits within an investment zone, has planning permission for a large-scale battery manufacturing facility, and has confirmed customers interested from a number of global battery manufacturers. 

“This project has the potential to attract more investors to our city that will bring jobs and prosperity to our residents.”