The Tata Group announced July 19 that it is planning to build a global battery cell gigafactory in the United Kingdom that is expected to have enough capacity to produce 40GW of cells annually.

Tata will invest over £4 billion ($5.15 billion) to build the factory, which will create up to 4,000 jobs, according to Al Jazeera. Upon completion, the plant will supply battery cells for Tata’s Jaguar Land Rover factories.

Prior to selecting the U.K., Tata also considered Spain as another potential location to house the battery gigafactory.

The U.K. government has declined to say how much financial support it will provide the project, but Tata could receive subsidies worth hundreds of millions of pounds.

Production at the factory is set to begin in 2026. By 2030, the U.K. government predicts the factory will be able to meet almost half of the country’s battery production needs.

“The Tata group is deeply committed to a sustainable future across all of our business,” said N Chandrasekaran, chairman of Tata Sons, the principal investment holding company and promoter of the Tata companies. “Today, I am delighted to announce the Tata group will be setting up one of Europe's largest battery cell manufacturing facilities in the U.K. Our multi-billion-pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, Jaguar Land Rover. With this strategic investment, the Tata Group further strengthens its commitment to the U.K., alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals and automotive. I also want to thank His Majesty's Government, which has worked so closely with us to enable this investment."