To acquire technical expertise for its £4 billion ($5.1 billion) UK battery project, which it plans to begin mass production in 2026, Tata Sons is in talks with a number of startups.

 

“If you look at the startups that are working in this space, they are at the forefront of technology,” Tata Motors Group Chief Financial Officer P.B. Balaji said in an interview in Mumbai. “It’s a melange of opportunities. We are speaking to a host of them,” he said.

 

The collaborations for the battery plant, capable of supplying cells for at least 500,000 vehicles a year, could range from a joint venture and sharing of knowledge to experimentation and licensing agreements, Balaji said.

 

Tata intends to have partners across “the whole pathway from cell chemistry to manufacturing to industrialization,” he said. The conglomerate is speaking to several companies involved in different stages of the value chain — research and development, manufacturing innovation and refining — and plans to make an announcement soon after narrowing down the options.

 

As per Balaji, the partnerships for the battery facility, which can produce cells for at least 500,000 vehicles annually, might vary from a joint venture and knowledge exchange to experimentation and licensing agreements.

 

Tata plans to work with partners "along the entire pathway from cell chemistry to manufacturing to industrialization." The conglomerate is in talks with a number of businesses involved in various phases of the value chain, including R&D, manufacturing innovation, and refining, and it hopes to announce its decision soon after reducing the field of possibilities.

 

Tata's initiative joins a number of automakers, including Mercedes-Benz Group AG, Stellantis NV, and Nissan Motor Co., who have primarily chosen to collaborate with established battery manufacturers in order to scale up Europe's battery supply. In June, Volkswagen AG, which is building 240 gigawatt hours of capacity in the area, stated that it was having trouble obtaining enough experienced laborers, machinery, and essential minerals.

 

The factory is good news for the UK's beleaguered auto industry, which has been hurt by both the transition to electric vehicles and the effects of Brexit. After the global semiconductor shortage and the closure of several factories, the UK manufactured 775,000 fewer automobiles last year than it did in 1965, a decrease in output.