BRIDGWATER — Agratas terminated Sir Robert McAlpine as its primary construction contractor and appointed Tonroe Group Ltd to continue work on its Bridgwater, Somerset, battery gigafactory project. The company stated the change was the result of a review of project requirements and evolving needs. Agratas notified the contractor via letter that its contract would conclude after three weeks.

A spokesperson for Agratas said: "Following a review of the project's requirements, we have decided to transition to a new construction partner. We thank our existing construction partner for their support to date. This change reflects the evolving needs of the project, positioning us to deliver the next phase with the capability and focus required to meet our objectives safely, efficiently and on schedule." A spokesperson for Sir Robert McAlpine said: "Having successfully completed the first phase of Agratas's battery manufacturing facility in Somerset, following extensive discussions, we have mutually agreed to part ways. We are now working closely with Agratas to support a smooth and orderly transition to a new construction partner."

The contractor worked on the project for over two years under a temporary letter of limited authority without a formal contract. During that period, it submitted invoices totaling approximately £400 million. Tonroe Group Ltd is a privately owned construction firm headquartered in Buckinghamshire. Another contractor, TClarke, departed the project in March.

Tata announced the gigafactory in 2023 with an initial production target of 2026. The target production start date was later revised to 2027. Internal project timelines set a production start target of January 2028. Multiple project milestones have been postponed due to procurement delays. The company has not yet purchased the equipment necessary to build a grid connection substation, and construction has not commenced on a site ring road. The facility requires the construction of battery electrolyte handling infrastructure and a large climate-controlled clean room. Jaguar Land Rover plans to source batteries from the facility for its upcoming electric vehicle models. Both companies are owned by Tata.

The UK government pledged £380 million in subsidies for the plant in April. The company allocated approximately £800 million for the facility's construction budget, but construction costs are expected to exceed this budget by at least £500 million, according to a person with knowledge of the project. The head of process engineering and the vice-president of global manufacturing engineering at Agratas UK have both departed the company, and the vice-president of manufacturing operations will retire in August. PB Balaji, chief executive, said: "We are running against the clock on this one. It is stressed, but we'll do our best to reach there."