Gov backs £625m loan for Jaguar EV plans

UK Export Finance (UKEF) has guaranteed 80 per cent of a new £625 million loan from 12 commercial banks that will support Jaguar Land Rover’s (JLR) electric vehicle (EV) plans.

The £500 million Export Development Guarantee, announced by international trade secretary
Anne-Marie Trevelyan, will be used for the development and export of battery electric vehicles.

The money supports the automakers plans to invest roughly £2.5 billion a year - expected to reach £3 billion by March 2026 - to increase the number of battery EVs in its model line-up.

Jaguar Land Rover is one of the UK’s largest exporters and employs over 28,000 staff based in the UK. In 2020-21, the company sold 439,588 vehicles in 127 countries, with about 80 per cent of its sales to export markets outside the UK.

“Jaguar Land Rover is pleased to have worked again with UK Export Finance on this new EDG facility,” said Adrian Mardell, chief financial officer, Jaguar Land Rover. “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.”

The move comes after the car manufacturer revealed that its production and sales have been significantly constrained by semiconductor shortages.

“We are backing our ambitious net zero plans with more concrete action,” said Anne-Marie Trevelyan, secretary of state for international trade. “We want our carmakers to accelerate the production of electric vehicles in the UK.

“This deal from UK Export Finance will help Jaguar Land Rover continue to sell the Best of British to the world, while creating jobs, boosting manufacturing and levelling up across the UK.”

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