France is set to inaugurate its inaugural electric vehicle battery plant as part of its efforts to drive reindustrialization.

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France Takes Major Step with Inauguration of First Electric Car Battery Factory

France is making significant strides in its efforts to bolster the electric vehicle battery industry, with the launch of its first battery factory for electric cars. This development marks a crucial milestone in President Emmanuel Macron’s ambitious plan for “reindustrialization” in France, aimed at reducing reliance on China’s dominance in this sector. Over the next three years, several factories are slated to emerge in the northern region of the country.

Partnership and Key Attendees at the Gigafactory Opening

The newly opened “gigafactory” located in Billy-Berclau is owned by Automotive Cells Company, a collaboration between major players such as French energy giant TotalEnergies, Germany’s Mercedes-Benz, and US-European automaker Stellantis, known for producing renowned brands like Peugeot, Fiat, and Chrysler. The inauguration ceremony will be attended by French Economy Minister Bruno Le Maire, along with the country’s energy transition and industry ministers. Notably, high-ranking officials from Germany and Italy will also be present, alongside the top executives from Mercedes, Stellantis, and TotalEnergies.

“Battery Valley” and Competition on the Global Stage

Local officials and business leaders have an ambitious vision of transforming the Hauts-de-France region into a hub known as “Battery Valley,” similar to Silicon Valley but dedicated to the electric car industry. Various companies are contributing to this vision, with Sino-Japanese group AESC-Envision building a plant near Douai to supply French automaker Renault starting in early 2025.

Furthermore, French startup Verkor plans to commence production in Dunkirk by mid-2025, while Taiwan’s ProLogium has selected the coastal city for its first European factory, set to begin operations in 2026. However, Europe faces tough competition from China, which currently leads in electric car battery production and the production of raw materials required for their manufacturing. The United States is also a formidable player, offering substantial subsidies through the Inflation Reduction Act, including $370 billion in clean energy incentives.

Meeting the EU Goals and Future Prospects

With the European Union targeting a phase-out of new fossil fuel car sales by 2035, Europe is racing to boost its battery and electric vehicle production. Over 50 battery factory projects have been announced in the EU in recent years. The French government aims to produce two million electric vehicles annually by 2030, with the ACC plant projected to supply 500,000 vehicles per year by that time. France’s foray into electric car battery manufacturing is a significant step towards achieving these goals and positioning itself as a key player in the global electric vehicle industry.

SOURCE: textwires

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