Sir Keir Starmer says Labour are "committed" to a gigafactory in the West Midlands in a move that could pump large sums to the area.

The opposition party are pledging £2 billion to part-finance eight gigafactories across the UK under their 'Green Prosperity Plan.'

One of these gigafactories will be in the West Midlands, Starmer confirmed to the Local Democracy Reporting Service today (12 June). 

While he would not spell out how much a site in Coventry or the West Midlands could get, the sums involved could be significant.

The Labour leader said there is a "real opportunity" for a gigafactory in the region, which he said had been the "engine room of the UK" for decades.

Gigafactories make batteries for electric vehicles at a large scale, and experts predict the UK will need ten by 2040 to meet demand as more people drive these cars – although so far only one has been built.

Labour's 'Green Prosperity Plan' was first announced in 2021 but was recently scaled back by Shadow Chancellor Rachel Reeves.

The party will now 'ramp up' to borrowing £28 billion per year in the second half of their parliamentary term to invest in green projects if they come to power, she said on Friday, 9 June.

Fixing the Fundamentals

Speaking to the LDRS this morning, Starmer said: "Obviously there's been a turbulent few days in politics, the last few days.

"But meanwhile, as you will know, across Coventry we've got an ongoing cost of living crisis – bills going up and energy bills still far too high. 

"And we've reached a turning point now where we can't carry on with sticking plasters. We've actually got to start fixing the fundamentals.

"And that's why Labour's setting out the details of its Green Prosperity Plan and what it means, which is fixing the fundamentals, bringing down the cost of living and creating the jobs for tomorrow." 

"Part of that Green Prosperity Plan has already allocated money for eight gigafactories across the UK, one of which will be in the West Mids," he went on to say.

"And so this will be really good news for Coventry and other places in the West Mids that we are committed to a gigafactory in the region."

A CGI image of the West Midlands gigafactory (image via Coventry City Council)

Asked about the level of funding for the gigafactory, Starmer said: "We're saying £2 billion for the eight.

"I can't give you a precise number, because we haven't broken it down in that way.

"But the commitment is that there will be one in the West Mids, so one of the eight will be in the West Mids – which will be really good news for all those people that will be able to work there, secure good jobs, and obviously that then creates more jobs in the supply chain into that factory anyway."

Rich History

Asked why Coventry is particularly important, Sir Keir referred to the area's "rich tradition" as a hub for manufacturing.

He told the LDRS: "The West Midlands has got a long rich history of manufacturing.

"Coventry and the West Midlands have got a history of manufacturing. You've got the skills there, you've got the wherewithal there.

"And I think it's very important that we invest in places where people already are so that people don't have to leave where they live to get on, but actually they can stay where they are using the skills or working on the skills they've already got..

"But also the rich tradition and history of Coventry and the West Midlands, which is, I mean it's been the sort of engine room of the UK for decades and decades."

He added: "This is about the next generation of jobs. So across the world, you see this in America and you see it in the EU, other countries are getting ahead when it comes to the next generation of gigafactories, next generation of renewables."

Jonathan Ashworth (first from left), Labour shadow ministers and councillors at Warwick Manufacturing Group in March (image via Coventry City Council)

Asked by the LDRS why government support for the gigafactory is needed, he said: "The gigafactory is needed for the future.

"What we need is a government that sees where the next generation of jobs are, partners up with business, and actually creates the jobs where they're needed.

"And also in the long run if we're going to get to grips with the cost of living crisis and the energy crisis, then we've got to have more home-grown energy.

"One of the problems we've got is that we're vulnerable to international trends at the moment, obviously Ukraine, and that means that our prices are going up higher than other countries.

"So it's about the next generation of jobs, it's about skilled jobs in Coventry and the West Midlands, but it's also about making sure that we've got proper independence when it comes to our energy supply."

The Search Continues

Plans for a gigafactory in the region have been in motion since 2021 but no operator to produce the batteries has been found yet.

It had been hoped Jaguar Land Rover's owner Tata would choose a site in the area for their gigafactory, but reports say they are likely to build one in Somerset instead.

Asked by the LDRS whether plans for the gigafactory are still realistic at this point, Starmer said: "So far as Jaguar Land Rover are concerned, obviously that's a commercial decision for them.

"But I think that in Coventry people have had too much of governments that give up at the first hurdle.

"I think there's a real opportunity here, I do think that we can build the infrastructure and the wherewithal around the gigafactory wherever we put it.

"But I don't think you can have a government that gives up the first time it faces any problem with a project. We've had too much of that over the last 13 years."

Asked what would happen to the money if no private investment materialises, Starmer said: "We are absolutely certain we can get the private investment to come up alongside the amount we put in.

"We're obviously talking to various businesses but there is an appetite.

"What businesses say they want is they want stability, which we haven't had in the last few years, they want certainty, they want strategic thinking from the government.

"And in those circumstances they're willing to invest alongside us. That's the turnaround that we want. 

"There's an absolute determination to see this through. We can't just keep giving up the first time there's any sign of a challenge."

Labour says it will fund eight gigafactories (image via SWNS)

It comes amid uncertainty over plans for Coventry airport, where Coventry City Council and owners Rigby have developed proposals for a gigafactory.

This project, called the 'West Midlands Gigafactory', aims to be operational by 2025 and has had £1.6 million from the council so far.

There are claims it will attract £2.5 billion of investment for the region and create 6,000 jobs.

Last month West Midlands Mayor Andy Street, a key supporter of the scheme, said talks are still ongoing with potential operators.

But earlier this year the project called for more government support, including £200m of funding to make it viable for investors.

"No gigafactory, anywhere in the world, has come forward without state support," they said in a submission to the government's Business, Enterprise and Industrial Strategy Committee.

"If the UK Government is serious about securing battery manufacturing, it must back the West Midlands Gigafactory as the only immediately deliverable opportunity."