Britain is set to secure a commitment from Tata's Jaguar Land Rover to build a battery plant in southwest England to supply a new range of electric Jaguar and Land Rover vehicles, Bloomberg reported on Tuesday.
India's Tata has chosen a site in Somerset, the Bloomberg report said, citing people familiar with the plans.
The company is set to outline its decision as soon as this week, the report added.
A government spokesperson said there was no update on any timelines for an announcement.
There have been months of speculation around where the factory would be built, with some previous media reports having saying Tata, a conglomerate with interests in software, steel, cars and airlines, had also been
considering Spain
as a location.
The plant would be a major win for Britain, which is trying to catch up in the global race to build electric vehicle (EV) battery capacity locally - vital for automakers which rely on heavy batteries being built near their car factories.
Tata's choice of Britain would also provide a boost for Prime Minister Rishi Sunak's government, which has pledged to grow the economy and outlined a series of net zero goals including a ban on the sale of new petrol and diesel cars from 2030.