Tata Group has confirmed it will build a £4bn “gigafactory” that will produce batteries for electric vehicles (EV) in Somerset.

Agratas, the subsidiary firm that will be overseeing the new project, said the factory will create up to 4,000 direct jobs and many more as part of the supply chain.

MPs have previously called on the government to “urgently create” an attractive environment for EV battery production in the UK or risk falling behind competitors.

A report from the cross-party Business and Trade Select Committee in November claimed that if the gap is not plugged, automotive production in the UK could decline, putting hundreds of thousands of jobs at risk.

Currently, China accounts for 78% of the world’s cathode production, and its dominance over large parts of the battery supply chain leaves battery-makers exposed if exports of battery materials and components are restricted.

Somerset councillor Bill Revans said: “It’s about seizing an incredible opportunity to be at the heart of...