JLR's talks with Envision AESC could lead to new UK gigafactory

Jaguar Land Rover and battery supplier Envision AESC are in talks to supply cells for electric Range Rover and Land Rover models, the Financial Times has reported. 

The potential partnership could lead to the construction of a new gigafactory in the UK, which is JLR's preferred location, but sites in Spain and Hungary are also being considered. 

Envision AESC, which started as a Japanese-based joint venture between NEC and Nissan in 2007 before being integrated into Chinese battery conglomerate Envision in 2018, is currently investing £450 million into a seperate battery gigafactory in Sunderland.

However, the deal being discussed is said to be so large that JLR will require its own battery facility. The firm plans to put six electric models on the road by 2025 but will still use its Solihull plant as its main hub for electric vehicle manufacturing. 

JLR is remaining tight-lipped over any potential agreement. “We are exploring all options at this time. No decisions have been made,” the firm said, declining to comment further. 

Envision, meanwhile, said it is in regular contact with a number of car makers, but would not comment on private discussions.

The company recently agreed to supply batteries for Mercedes-Benz’s Tuscaloosa factory in Alabama from 2025. The batteries will be used to power vehicles such as the EQS SUV, EQE SUV and Mercedes-Maybach SUV. 

JLR will require a significant battery supplier. Jaguar plans to go all-electric from 2025. As for Land Rover, it is set to launch the all-electric Range Rover in 2024.

The firm aims to offer an electric powertrain option on every model by the end of the decade, with the goal of achieving a 60% EV sales mix by that point. 

JLR has also drawn up plans to build the next-generation Range Rover Evoque and Land Rover Discovery Sport on an all-new EV-focused platform.