Jaguar Land Rover has received a major loan which will support the research, development and export of battery electric vehicles.
UK Export Finance (UKEF) has guaranteed 80% of a new £625 million loan from 12 commercial banks, under its Export Development Guarantee (EDG) program designed to drive major investments into UK exporters.
Backing electric car production in the UK is a key part of the Prime Minister’s Ten Point Plan for a green industrial revolution. The government is also directly investing more than £850 million to develop the supply chain for cleaner vehicles in the UK to ensure the auto industry remains competitive for years to come and has supported over £2 billion of commercial investment into the industry’s export capacity through UKEF.
Jaguar Land Rover is one of the UK’s largest exporters and employs over 28,000 staff based in the UK. Over 80% of the vehicles built by Jaguar Land Rover in the UK are sold to the world and three of its seven global technology hubs are based in Manchester, Warwick & London. In 2020-21, the company sold 439,588 vehicles in 127 countries, with about 80% of its sales to export markets outside the UK.
This loan will support Jaguar Land Rover’s plans to invest about £2.5 billion a year, expected to reach £3 billion by March 2026, to increase the number of battery electric vehicles in its model lineup under its Reimagine Strategy.
Anne-Marie Trevelyan, Secretary of State for International Trade said: “We are backing our ambitious net zero plans with more concrete action. We want our car makers to accelerate the production of electric vehicles in the UK. This deal from UK Export Finance will help Jaguar Land Rover continue to sell the Best of British to the world, while creating jobs, boosting manufacturing and levelling up across the UK.”
Exports Minister, Mike Freer MP, said: “Jaguar Land Rover is one of Britain’s biggest car manufacturers. It supports the livelihoods of thousands of people across the country, and its success is underpinned by exports. UK Export Finance has secured another major investment for the UK automotive industry that will safeguard jobs and prioritise sustainability.”
Adrian Mardell, Jaguar Land Rover’s Chief Financial Officer, said: “Jaguar Land Rover is pleased to have worked again with UK Export Finance on this new EDG facility. This will help support the significant investment in our transition to offer a fully electrified product portfolio and to achieve our target of net zero carbon emissions by 2039.”