JLR receives major loan for EV research and development
Jaguar Land Rover has received a £625-million-loan from twelve commercial banks, secured by the UK government with half a billion pounds, for the research, development and export of battery electric vehicles.
The loan will support JLR’s Reimagine electrification strategy, unveiled around a year ago, according to the UK government. Converted, the sum of the loan corresponds to about 749 million euros. UK Export Finance guarantees 80 per cent of the loan, i.e. about 599 million euros.
According to the Reimagine strategy, JLR wants to invest around 2.5 billion pounds or three billion euros per year in electrification and increase the number of its battery-electric vehicles.
Specifically, the carmaker, part of India’s Tata Group, announced that the Jaguar brand would only sell fully electric vehicles from 2025. For Land Rover, this is to be the case from 2036. So far, the carmaker has only one electric car on offer, the already ageing I-Pace, plus a few plug-in hybrids. The new generation of the Range Rover can drive 113 kilometres in E-mode with a 30 kWh battery.
The country’s promotion of electric car production is part of the ten-point plan for a green industrial revolution announced by Prime Minister Boris Johnson in November 2020. At that time, the phasing out of internal combustion cars was also set for 2030. In addition to promoting development and production, the plan also calls for the development of charging infrastructure, battery production, and green hydrogen generation.
But JLR’s plans are also crucial for UK car production: 80 per cent of the UK’s Jaguar Land Rover-built vehicles are exported – so the loan guarantee is also through UK Export Finance.” Jaguar Land Rover is one of Britain’s biggest car manufacturers. It supports the livelihoods of thousands of people across the country, and exports underpin its success” says Export Minister Mike Freer.”UK Export Finance has secured another major investment for the UK automotive industry that will safeguard jobs and prioritise sustainability.”
Adrian Mardell, Jaguar LandRover’ss Chief Financial Officer, adds:”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.”
- ADVERTISEMENT -