Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

France inaugurates first of four gigafactories in the north

Published 05/30/2023, 04:48 AM
Updated 05/30/2023, 12:16 PM
© Reuters. French Finance Minister Bruno Le Maire visits the gigafactory of Automotive Cells Company (ACC), a joint venture of Stellantis, TotalEnergies and Mercedes, during its inauguration in Billy-Berclau-Douvrin, northern France, May 30, 2023. REUTERS/Pascal Ros
RENA
-

BILLY-BERCLAU, France (Reuters) - France will inaugurate on Tuesday a battery-making gigafactory, the first of four such plants European and Asian companies plan to build in the north of the country.

The development by Automotive Cells Company, a joint-venture between Stellantis, Mercedes and TotalEnergies, involves total investment of 2 billion euros ($2.20 billion) - with the French state and local authorities providing nearly half.

It highlights the race between European governments to attract global car makers as they seek to bring the supply of components for electric vehicles closer to their main markets.

"ACC's new plant marks a key milestone in Europe's transformation to make its auto industry more resilient, competitive, and sustainable, also in the electric era," Ola Källenius, Chief Executive Officer of Mercedes-Benz, said ahead of the inauguration.

The plant will start production of lithium-ion batteries later this year with an initial capacity of 13 gigawatt hours (GWh), to be ramped up to around 40 GWh, enough to fit some 500,000 cars a year. It is expected to help create up to 2,000 jobs by 2030, the companies and regional authorities have said.

Taiwan's ProLogium and China's Envision AESC have also announced plans to build gigafactories in France's northern region around the port of Dunkirk, while Renault (EPA:RENA) has set up a partnership with local start-up Verkor in the same area to produce batteries for its premium and Alpine electric models.

Europe largely depends on batteries made in Asia for electric cars, and national leaders are offering various incentives to kickstart the industry.

That has become more urgent since the United States last year passed its $430 billion Inflation Reduction Act, which includes major tax subsidies to cut carbon emissions while boosting domestic production and manufacturing.

© Reuters. French Finance Minister Bruno Le Maire visits the gigafactory of Automotive Cells Company (ACC), a joint venture of Stellantis, TotalEnergies and Mercedes, during its inauguration in Billy-Berclau-Douvrin, northern France, May 30, 2023. REUTERS/Pascal Rossignol/Pool

French President Emmanuel Macron, who personally lobbied to secure at least one the gigafactories in the Dunkirk region, has set a production target of 2 million electric vehicles made in France by 2030.

($1 = 0.9084 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.