JLR at risk of battery supply delays after Somerset factory turmoil

Jaguar Land Rover (JLR) is at risk of delays for its new electric car models as turmoil plagues the construction of a vital battery factory in Somerset. The Agratas facility, a £5.2 billion project backed by the UK government, is intended to supply batteries for JLR's upcoming electric vehicles.

Construction problems have led Agratas to terminate its main contractor, Sir Robert McAlpine (SRM), replacing them with Tonroe Group Ltd (TSL). This marks the second major contractor departure, following TClarke's exit in March. Agratas informed SRM that their services would end with only three weeks' notice, creating uncertainty for the project's timeline.

The gigafactory, planned as the UK's second, is seen as a cornerstone for the domestic car industry's shift away from fossil fuels. The UK government had pledged £380 million in subsidies in April. However, the project is facing significant cost overruns, with estimates suggesting the actual construction cost could exceed the £800 million budget by at least £500 million.

Internal tensions have reportedly arisen as contractors struggled to meet targets perceived as impossible. SRM, working under a temporary arrangement for over two years, billed around £400 million without a formal contract. The project's original target start date of 2026 was pushed to 2027, and now it is understood that the latest internal goal of January 2028 is also likely to be missed. The new contractor, TSL, faces the challenge of quickly adapting to the demanding requirements of the gigafactory, including facilities for handling dangerous electrolytes and constructing one of Europe's largest clean rooms.