Mobility Portal, Spain
Date: February 2, 2024
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By Mobility Portal
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¡Newsflash! France secures €10 billion investment for the construction of 4 gigafactories

France stands as the second-largest automotive production hub in Europe. Additionally, the French government provides generous subsidies to private entities for the establishment of lithium battery plants. What are the key points of the new agreement?

In France, there is a total accumulation of ten billion euros from public and private funds for the opening of four gigafactories around the national territory in the near future.

The latest announcement occurred in January, and it comes from the French sodium-ion battery technology startup, Tiamat, a spin-off from the French National Center for Scientific Research (CNRS).

For the project, the company raised 22 million euros in a financing round to support its plan to build a 5 GWh factory in its home country.

Furthermore, on January 24th, a meeting was held at the Somme Prefecture to determine the location for the factory. The agreed-upon location is the Jules Verne industrial zone.

“The State services are mobilized so that the established schedule can be met, with the prefect committing to an administrative procedure time that does not exceed the fall of 2024,” reads the official statement from the Prefecture.

“A roadmap is being determined to specify the schedule and confirm the financial commitments of the State, the Region, and the Metropolis.”

The goal is to start operating the plant by the end of 2025 until late 2029. In the long term, the creation of up to 1,000 jobs is estimated.

However, it is worth noting that of all the announced plans, Tiamat’s represents the least economically significant.

Read More: “Tiamat to build sodium-ion battery plant in France following Stellantis Ventures investment”

In this regard, one of the significant investments comes from the French government, with the announcement of the arrival of the Taiwanese company ProLogium.

The total amount will be 5.2 billion euros, and it is estimated to generate 3,000 jobs.

Regarding this project, the French government provided a substantial incentive of over 1 billion euros.

“They trusted in France and a long-term industrial site, so we will be committed to meeting the deadlines, funding, and everything that will allow them to succeed in the long term,” said French President Emmanuel Macron about the plan.

Production is expected to start in Dunkirk in 2026, and the factory will have an estimated capacity of 48 GWh.

On the other hand, another startup that unveiled a project of this nature was Verkor.

The French battery company, partially owned by Renault, stated in September that it has over 2.15 billion euros in financing to build a gigafactory on the northeast coast of the country.

The budget includes 850 million euros in capital raised by the company, 600 million euros in loans from the European Investment Bank (EIB), and 650 million euros in state subsidies.

The new plant will create 1,200 direct jobs and 3,000 indirect positions.

Simultaneously, it will have an initial production capacity of 16 GWh per year, including 12 for the Renault Group.

Production is scheduled to start in mid-2025 with a location in Dunkirk.

On the other hand, the oldest announcement regarding plant openings comes from the Chinese company Envision, which notified in November 2021 about the inauguration of a plant under its command in Douai.

The project of the Shanghai-based firm plans for the unit to start operating by the end of this year.

While the production goal is to reach a capacity of 30 GWh per year or more at the site by 2029.

It is worth noting that the initial output would be around nine GWh annually, mainly intended for Renault, the company that initially developed the project.

The investment by the Asian company is two billion euros. The plant will operate under the name Automotive Energy Supply Corporation (AESC), a subsidiary of Envision.

Read More: “Europe will open 250 battery factories by 2033. What are the confirmed projects?”

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