What is a gigafactory and what do they do?

Jaguar Land Rover’s parent owner Tata has revealed plans about building a new battery plant – or gigafactory – in the UK, creating thousands of jobs in the process. Reported to be located near Bridgwater, Somerset, the site will transform JLR’s battery-creating abilities.

But what is a gigafactory and why does the car industry need them? Let’s take a look.

Where did the ‘gigafactory’ term come from?

It’s thought that the term ‘gigafactory’ came from Tesla’s Elon Musk. It’s believed that he first used the phrase in an investors speech during November, 2013. Back then, Musk was talking about the kind of high-volume production capacity that would be needed to successfully deliver the Tesla Model 3 electric saloon.

The word comes from a combination of ‘giga’ – meaning a measurement that has been multiplied by one billion – and ‘factory’. Together, they reflect a very large battery production site.

What is made inside a gigafactory?

A gigafactory allows a company to create electric vehicle batteries – as well as other EV-related products – at scale. By producing them in such vast numbers, the overall cost comes down. It also helps to free up supply lines as, with production nearby, factories can get quick access to these much-needed components and batteries.

Are there any other gigafactories in the UK?

Not as yet. One of the most promising gigafactory plans came through Britishvolt, an electric vehicle battery company which fell into administration in January after it failed to build a facilty in Northumberland. At the time, it made the majority of its 300 staff redundant.

At present, the only real prospective site is being made by Envision AESC in Sunderland. Set to be operational by 2025, it’s a gigafactory that will employ more than 1,000 people.

Are there other gigafactories across the world?

Yes. It’s probably not much of a surprise that Tesla dominates in the gigafactory field, with sites in Fremont, New York and Shanghai. It is also underway with sites in Texas and Berlin.

However, it’s not just Tesla building gigafactories. EV specialists Northvolt has already teamed up with Volvo to create a site in Sweden, while it also plans a second site in Germany via a partnership with Volkswagen Group.