British Prime Minister Theresa May on Monday confirmed that Jaguar Land Rover will receive a loan guarantee from taxpayers for 500 million pounds (approximately $626 million) to support future EV development.
Rather than directly funding the loan, the guarantee means taxpayers will be on the hook for any loan taken out by Jaguar Land Rover, up to the $626M value, should the automaker default.
The announcement comes just a week after Jaguar Land Rover said it will turn its Castle Bromwich plant in the United Kingdom into a hub for electrified vehicles. The automaker said it will use the plant to produce new EVs, as well as batteries and electric motors.
Jaguar Land Rover already has an EV in the form of the 2019 I-Pace. The automaker's next EV will be a redesigned Jaguar XJ due in 2020. There will also be Land Rover EVs, including potentially a version of the redesigned Defender.
To help curb costs, Jaguar Land Rover is moving to a common platform referred to as MLA. It debuts this year in the redesigned Defender. The automaker also in June said it will collaborate on EV tech with BMW Group. Specifically, Jaguar Land Rover said it will collaborate on electric drive systems, which consist of an electric motor, transmission, and power control units, often combined as a single component.