France is rapidly becoming a major player in the global battery market, with five mega-battery factories set to boost its production capabilities significantly. Amidst growing global competition, particularly from China, France's efforts aim to establish a more autonomous battery production landscape. This initiative is part of Europe's broader strategy to reduce reliance on imported electric batteries, especially from China, and to address the European Court of Auditors' 2023 concerns about the continent's lag in electric battery production.
In May 2023, notable industry giants such as Stellantis and TotalEnergies, along with Mercedes, inaugurated the Automotive Cells Company (ACC) plant in Douvrin, marking France's first gigafactory. The facility, which started with a capacity of 13 GWh/year, is projected to expand to 40 GWh/year by 2030. This expansion is critical as Europe moves towards banning combustion-powered vehicles by 2035.
Furthermore, AESC Envision, a Sino-Japanese venture, is set to start production soon in Douai, targeting initial outputs significant enough to power Renault's future electric models. Another ambitious project by Verkor, following a substantial 2 billion euro fundraising, is slated to begin in mid-2025 in Dunkirk, aiming to supply batteries for Renault's Alpine models.
With Taiwan's Prologium and Blue Solutions, a subsidiary of the Bolloré Group, also announcing major projects, France is on track to achieve its target of 100 to 120 GWh of annual battery production by 2030. This would be sufficient to support the production of two million electric vehicles domestically.
The forthcoming Choose France summit on May 13 is anticipated to unveil further developments, which could reinforce France's position in the global market. Despite the intense competition and substantial incentives like the USA's Inflation Reduction Act, which tempts manufacturers with significant subsidies, Europe is countering with its own measures. These include the "temporary crisis and transition framework" to facilitate state aid for energy transition projects.
Europe's strategy extends beyond assembly; it encompasses the entire supply chain—from raw material extraction to battery cell production and recycling. Efforts are underway to develop domestic sources of essential materials like lithium and nickel and to establish ethical supply chains internationally. The European Battery Regulation of August 2023 is set to further tighten standards, mandating detailed sustainability and carbon footprint assessments for batteries by 2025.
