The UK government has secured more than 4,200 jobs through over £700 million of investment in the advanced manufacturing sector, as part of its Modern Industrial Strategy aimed at strengthening industrial resilience and supporting future-facing industries.

The funding package includes a £380 million government grant for Agratas to support the development of a large-scale battery gigafactory in Somerset, one of the largest of its kind in Europe. The facility is expected to play a central role in expanding the UK’s domestic battery production capacity and reinforcing supply chains linked to electric vehicle manufacturing.

Announced during a visit by Business Secretary Peter Kyle on 9 April, the project underlines the government’s efforts to position the UK as a competitive hub for investment, manufacturing and clean technology development in an increasingly volatile global environment.

Once fully operational, the Somerset gigafactory is projected to generate around £43 billion in economic value over a 25-year period, while significantly reducing the UK’s reliance on imported batteries. The facility will produce battery cells for Jaguar Land Rover (JLR), supporting the ongoing electrification of the automotive sector.

The site will support more than 4,200 direct jobs, alongside thousands of additional roles across the supply chain, and will include the creation of 300 apprenticeships. These will be supported by a dedicated battery manufacturing training unit aimed at developing the specialist skills required for both the facility and the wider UK battery ecosystem.

Construction of the site is progressing, with the steel framework for the main building completed using 100% British steel, and further works ongoing to complete the structure and install manufacturing equipment.

Earl Wiggins, Vice President for Manufacturing Operations at Agratas UK, said the investment will play a key role in delivering net zero objectives and strengthening the UK’s position as a global leader in battery manufacturing. He added that the facility will enable the company to scale production for its anchor customer, JLR, with more than 2,200 people expected to be working on-site over the next year as development progresses.

The gigafactory forms part of a broader policy framework under the UK’s Modern Industrial Strategy, which has secured more than £360 billion in private investment and supported up to 120,000 jobs since its launch. The strategy combines public funding with measures to reduce energy costs for manufacturers, streamline planning processes and reform regulation to accelerate industrial development.

Additional government support for the battery sector includes £47 million in funding through the Battery Innovation Programme, aimed at advancing research and development, strengthening supply chains and supporting high-skilled job creation.

The automotive sector is also set to benefit from £190 million in funding, including £90 million allocated through the DRIVE35 programme to support innovation and prototype development by companies such as Nissan and Jaguar Land Rover. A further £100 million is being made available to suppliers to support their transition towards electric vehicle manufacturing.

Beyond batteries and automotive, the government is deploying additional funding to support advanced manufacturing more broadly, including programmes focused on digitalisation, AI and robotics adoption, as well as a £182 million engineering skills package aimed at training the next generation of engineers.

Over the past two years, UK Export Finance has backed more than £6.6 billion in advanced manufacturing investment, while the British Business Bank is deploying £4 billion in growth capital across key industrial sectors to further crowd in private investment.

The latest investment announcement is expected to attract additional private capital into advanced manufacturing and clean technology sectors, reinforcing the UK’s long-term strategy to build a resilient industrial base, support the energy transition and strengthen its position in global battery and EV supply chains.