- The European Commission has approved €48 million worth of state aid that the French government plans to grant directly to AESC’s French division, to support the opening of the first phase of a new lithium-ion battery plant for EVs in Douai, France.
- In the factory’s first phase, the facility will have an annual battery production capacity of 9GWh – which would equate to enough to support around 100,000 high-capacity EV battery packs.
- The factory is expected to create around 1,000 direct jobs, with further indirect jobs resulting from the project.
EU gives the green light for French aid on new EV battery site
The new factory will also play a significant part of Renault Group’s own EV ambitions, as part of the ongoing partnership between the automotive OEM and battery group. With production at the site slated to start later this year, it’ll help satisfy battery demand for EVs such as the Renault 5 – which, strategically, is also built in Douai.
The European Union’s justification for approving the state aid was the factory aligning with strategic EU objectives for aspects such as job creation and the green transition. This significant approval also comes whilst the EU moves to protect and grow its homegrown car industry, which has previously included tariffs against EVs made in China. Earlier this week, Trump also threatened the EU with tariffs against industries such as the automotive sector – making automotive-related investments such as these even more crucial for the bloc in the coming years.
Lei Zhang, Founder and Chief Executive Officer at AESC Group, said in an earlier statement on the AESC and Renault Group partnership:
“AESC Group’s mission is to be the net zero technology partner of choice for global enterprises, governments, and cities. We are therefore delighted that Renault Group chose AESC batteries for its next generation of EVs. Investing to build a new gigafactory in northern France, we aim to support the net zero carbon transition by making high performance, longer range batteries and EVs affordable and accessible for millions more motorists. This first phase development will unlock future large-scale investment to grow the local supply chain and develop the whole life cycle opportunities of batteries, including energy storage, battery reuse, smart charging and closed loop recycling. It has the potential to create thousands of new high value green jobs as part of an end-to-end battery ecosystem in the region.”