A deal to build an electric car battery factory in the UK is believed to be close to completion.
The BBC understands that the Gigafactory for Jaguar Land Rover (JLR) will be built on Gravity Business Park in Somerset.
Up to 9,000 jobs will be created at the site in Bridgwater, close to the M5.
Talks between the British government and JLR owner Tata are understood to be at an advanced stage following stimulus proposals from Chancellor Jeremy Hunt.
West of England metro mayor Dan Norris said “quick action is needed to get the deal done” after it was reported in The Times that Somerset was facing competition from Europe to be the factory’s home.
Tata has been considering whether to build its battery plant in the UK or Spain, but is said to be considering a UK location following subsidies and financial incentives from the government.
Mr Norris said he had previously held face-to-face meetings last year with Jaguar Land Rover, whose electric car batteries would be made at the plant if the deal was confirmed.
The Gigafactory will be built on the Gravity Business Park near Bridgwater
He said he was keen to welcome the company to the region and that the Gravity site was “super convenient with the Port of Bristol on the doorstep”.
“We need an effective UK industrial strategy to ensure we take advantage of the huge opportunities of net-zero. We have a site that is shovel ready, so let’s get this deal done now,” he added.
Gigafactories are being built around the world to meet a predicted huge increase in demand for batteries as countries begin to ban gasoline and diesel engines.
The UK government is under pressure from carmakers to increase battery production capacity in Britain, amid fears that car factories could leave the UK.
The company, one of the world’s biggest carmakers, has committed to making electric vehicles in the UK but said its pledge is now under threat.
It warned it could face a 10% tariff on exports to the EU because of rules on where parts are sourced.
Analysis by Simon Jack, BBC Business Editor
There is growing optimism Jaguar Land Rover owner Tata group will choose Somerset as the site for a new multi-billion pound electric vehicle battery plant.
However, government sources warn that this is not certain.
Tata is also considering a site in Spain, and government officials say they are not aware of a final decision.
The Chancellor of the Exchequer this week acknowledged the urgency to secure UK battery manufacturing after the BBC revealed that Peugeot parent company Citroen Stellantis had told MPs they would not be able to comply with new rules requiring 45% of the value of the vehicle to be sourced within the UK or EU.
Other manufacturers have raised similar concerns, and the EU’s auto trade body also said the regulations would have to be amended or delayed because EU car firms still source most of their batteries from Asia while building their own facilities.
The chancellor told business leaders at the British Chamber of Commerce to “watch this space” and while Treasury insiders said they did not recognize a reported figure of £500m in subsidies to land the plant, they acknowledged significant incentives in the hundreds of millions that are were at the table.
Tata also owns several steel plants in the UK, including Port Talbot in South Wales, and is currently in talks for hundreds of millions in grants to upgrade and future-proof those plants.
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