TestCloud
Prep • Practice • Perform
Log In

Tata Sons' Agratas Secures USD 990.79 Million Loan to Develop UK’s Largest Battery Manufacturing Plant.

Economy Business | Dated: 23 Apr 2025

In April 2025, Mumbai (Maharashtra)-based Tata Sons Private Limited, through its wholly owned subsidiary Agratas Energy Storage Solutions Private Limited, secured a 750 million Euros (approximately USD 990.79 million) two-year bridge loan to construct the United Kingdom (UK)'s largest battery manufacturing facility.

🎯 Key Highlights:

  • - This loan marks a significant step in Tata Group’s broader 4 billion Euros investment aimed at boosting Electric Vehicle (EV) battery production in the UK. The initiative aligns with Tata’s strategy to promote sustainable energy solutions and reinforce the UK's automotive industry.
  • - This bridge loan, among the top three foreign currency borrowings by Indian companies in 2025, was structured with participation from approximately 15 banks. It features a spread over the Sterling Overnight Index Average (SONIA).
  • - The battery manufacturing facility will be located at the Gravity Smart Campus in Somerset, UK, and is scheduled to begin production by 2026.

💡 Other Important Facts:

  • (i) The facility is expected to contribute nearly 50% of the UK’s projected battery manufacturing capacity for the automotive sector by the early 2030s.
  • (ii) Jaguar Land Rover, a Tata Motors subsidiary, is anticipated to be the anchor customer. The plant will significantly aid the UK’s transition to electric mobility.
  • (iii) A bridge loan is a short-term financing option used to bridge the gap between two major financial events, such as buying a new asset before selling an existing one.

📚 Test Your Knowledge:

Which Indian company’s subsidiary recently secured a USD 990.79 million loan to develop the UK’s largest battery manufacturing plant?

Correct Answer: Tata Sons

🚀 Quick Recap: