The development of Automotive Cells, a joint venture between Stellantis, Mercedes and TotalEnergies, involves a total investment of €2 billion ($2.20 billion) – with nearly half provided by the French state and local authorities.
Reuters reported that this highlights the race between European governments to attract global automakers as they seek to bring electric car components closer to their main markets.
“The new ACC plant marks a milestone in Europe’s transformation to make the automotive industry more flexible, competitive and sustainable, also in the age of electrification,” said Ola Källenius, CEO of Mercedes-Benz, before the opening.
The plant will start producing lithium-ion batteries later this year with an initial capacity of 13 GWh, to be increased to around 40 GWh, enough to handle about 500,000 cars annually. Businesses and regional authorities said it is expected to help create up to 2,000 jobs by 2030.
Taiwan’s ProLogium and China’s Envision AESC have also announced plans to build giant factories in France’s northern region around the port of Dunkirk, while Renault has partnered with local startup Verkor in the same region to produce batteries for its premium and Alpine electric models. .
Europe is largely dependent on batteries made in Asia for electric cars, and national leaders are offering various incentives to kick-start the industry.
This has become more urgent since last year the United States passed the $430 billion Inflation Reduction Act, which includes large tax subsidies to cut carbon emissions while boosting domestic production and manufacturing.
French President Emmanuel Macron, who has personally lobbied to secure at least one factory in the Dunkirk region, has set a target of producing two million electric cars made in France by 2030.
Rial