A new £4 billion Agratas Gigafactory in Somerset is poised to act as a “catalyst” for transforming the region’s economy and attracting international companies to the UK.
This is according to Martin Bellamy, CEO of Salamanca Group, the investment firm behind the development of the Gravity smart campus.
The facility is being developed by Tata-owned Agratas near Bridgwater. It is expected to create around 4,000 jobs directly, with a broader economic impact across the region.
Scheduled to begin production in 2026, the factory will manufacture electric vehicle (EV) batteries, supplying Tata-owned Jaguar Land Rover and Tata Motors.
A Historic Site Reimagined
The 616-acre Gravity smart campus, once a munitions factory during World War II and later owned by BAE Systems, is now being transformed into a hub for cleantech innovation.
The site, larger than Monaco, was acquired by Salamanca Group in 2017 with a vision to establish the UK’s largest innovation campus, aiming to create 7,500 jobs.
Agratas secured 308 acres of the campus, marking a significant achievement for the UK, which had previously struggled to attract high-profile EV manufacturers like Tesla and Rivian.
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Key Factors Driving the Deal
- Strategic Location and Infrastructure
Gravity’s location near the M5 corridor, with ready access to power and transport infrastructure, played a crucial role in securing the Agratas investment. Bellamy highlighted the difficulty of finding a “construction-ready” site of this scale in the UK. - Government Support
The UK government reportedly offered economic incentives to secure the deal, emphasizing its strategic importance to the nation’s economy. While the specifics remain undisclosed, Bellamy noted that large-scale projects like this require public-private collaboration. - Tata’s UK Connection
Agratas’ decision to invest in Somerset reflects Tata’s longstanding relationship with the UK, including its ownership of Jaguar Land Rover and Tata Steel operations.
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Transforming the South West Economy
The gigafactory is expected to drive a ripple effect along the M5 corridor, potentially changing the economic landscape of the South West.
Bellamy pointed out Somerset’s success in attracting a high-profile automotive project—traditionally centered in the Midlands or North East—underscores the region’s growing appeal for major investments.
Notable firms like Rolls-Royce, Airbus, and Leonardo already have a presence in the area, signaling its potential to host a broader range of industries.
Beyond EV Batteries
The Agratas gigafactory will be the anchor tenant of the Gravity smart campus, but the site is designed to accommodate a variety of businesses:
- Up to 1.1 million square meters of commercial space.
- 750 homes, a hotel, and leisure facilities to support a self-contained ecosystem.
- Potential partnerships with a tech company, hinted at by Bellamy.
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Infrastructure Investment
In March, Somerset Council committed £150 million to improve infrastructure around the site, focusing on transport enhancements.
These upgrades are being funded through a combination of central government grants and retained business rates from the development.
A Model for Future Growth
Bellamy described the project as having the potential to reshape the region’s economy, making Somerset a destination for cutting-edge industries.
He said:
“If the South West can attract this, it can attract anything.”
With its combination of strategic planning, infrastructure investment, and government support, the Agratas Gigafactory at Gravity could set a benchmark for attracting global companies to the UK, driving innovation and economic growth for years to come.
