£500m loan guarantee supports Jaguar Land Rover electric car plans

Jaguar Land Rover has received a £500m export development guarantee to support the research, development and export of battery electric vehicles.

UK Export Finance (UKEF) guaranteed 80% of a new £625m loan from 12 commercial banks, under its Export Development Guarantee (EDG) programme designed to drive major investments into UK exporters.

Backing electric car production in the UK is a key part of the government’s plan for a green industrial revolution. The government is also directly investing more than £850m to develop the supply chain for cleaner vehicles in the UK to ensure the automotive industry remains competitive in the future and has supported over £2bn of commercial investment into the sector’s export capacity through UKEF.

Jaguar Land Rover is one of the UK’s largest exporters and employs over 28,000 staff based in the UK.

Over 80% of the vehicles built by the company in the UK are sold globally and three of its seven global technology hubs are based in Manchester, Warwick and London.

In 2020-21, the company sold 439,588 vehicles in 127 countries, with about 80% of its sales to export markets outside the UK.

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

This loan will support Jaguar Land Rover’s plans to invest about £2.5 billion a year, expected to reach £3 billion by March 2026, to increase the number of battery electric vehicles in its model line-up as part of a new strategy.

The company has significantly accelerated its plans for expanding its line-up of fully electric vehicles under its new ‘Reimagine Strategy’ with plans to offer new all-electric Jaguar models from 2025 and six pure electric Land Rover variants over the next five years.

Jaguar Land Rover
www.jaguarlandrover.com