The European Commission has approved a €48m ($49.67m) French state aid measure to support the development of Envision AESC France’s proposed lithium-ion battery factory for electric vehicles (EVs) in Douai, France. This decision aligns with the EU’s strategic goals of job creation, regional development, and fostering the green transition of the regional economy.
France has informed the Commission of its plans to assist Envision AESC France in setting up the initial phase of a new factory in Douai. The facility will be equipped to produce lithium-ion batteries for EVs with an annual production capacity of 9 GWh in the first phase. The French aid, provided as a direct grant, aims to generate around 1,000 direct jobs and additional indirect employment opportunities.
The new factory is designed to operate with carbon neutrality and will be situated in Hauts-de-France, a region eligible for regional aid under EU regulations. The Commission’s assessment concluded that the aid would significantly contribute to job creation and the economic upliftment of a disadvantaged area. The assistance provided is considered to have an incentive effect, as the beneficiary would not be able to undertake the project without public support.
AESC chief communications officer, Raj Shah, expressed gratitude for the decision and stated that they are looking forward to starting production in Douai later this year. Last year, AESC commenced construction of a new, full-scale battery plant in Navalmoral de la Mata in Spain’s Caceres province.
The approval of the French state aid measure underscores the commitment of the EU and its member states to support the transition to sustainable transportation solutions and the growth of the electric vehicle industry. This investment in lithium-ion battery production for EVs is a significant step towards reducing carbon emissions and achieving the EU’s climate goals.
The European Commission’s decision to approve the aid for AESC’s proposed EV battery facility highlights the importance of public-private partnerships in driving innovation and sustainability in the automotive industry. With the development of this new factory, France is poised to become a key player in the production of electric vehicle batteries, supporting the growth of the EV market and creating new job opportunities in the region.
