EU greenlights France subsidy to Taiwan for EV battery production

By Al Mayadeen English
Source: Agencies
3 Aug 2023 22:19
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An estimated 3,000 people are expected to be hired in the planned factory, whereas another 12,000 will be supported across the European region.

The reflection of a 2021 Ford Mustang Mach E is seen in the window as it charges at a Ford dealership in Wexford, Pa., May 6, 2021. (AP)

The EU Commission said in a statement on Thursday it authorized France to provide 1.5 billion euros ($1.6 billion) in grants for Taiwan's ProLogium for the purposes of developing a new generation of batteries for electric vehicles.

"The European Commission has approved, under EU State aid rules, a €1.5 billion French measure to support ProLogium Technologies (‘ProLogium') in researching and developing a new generation of batteries for electric vehicles. The measure will contribute to the achievement of the strategic objectives of the European Green Deal and the EU battery strategy," the statement by the EU read.

A separate statement by the French Economy Ministry said the goal will be to build a factory in Dunkirk, France. An estimated 5.2 billion euros will be invested in the construction of the new factory where solid-state electric batteries will be produced starting in 2026.

An estimated 3,000 people are expected to be hired, whereas another 12,000 will be supported across the region.

"This investment shows the success of the strategy for France to catch up in batteries: this factory will produce one of the most technologically advanced batteries in the world," the French Economy Ministry said.

By 2030, the French government expects to produce two million electric vehicles per year, and the European Commission expects the project to contribute to the European Green Deal and the EU battery strategy.

Earlier in May this year, France opened its first electric vehicle battery factory.

Apart from ProLogium, there are currently plans to build four other factories in the country's northern regions.

Renault Chairman Jean-Dominique Senard said on July 8 a "Chinese storm" is looming over Europe's electric vehicle industry.

Senard told Reuters on Saturday that China's recent move to ban exports of two metals used in semiconductors and EVs, gallium and germanium, should raise warning lights for European policymakers since it demonstrates the continent's over-reliance on China and the necessity to construct a costly supply chain.

China stated earlier this week that from August 1, purchasers of two chipmaking metals, gallium and germanium, will need to apply for export licenses. Beijing's action has been interpreted as retaliation for Western restrictions on China's access to sophisticated chip manufacturing equipment.

"When I talk about a Chinese storm, I'm talking about the strong pressure today related to Chinese (electric) vehicle imports into Europe," he explained.

Senard added, "We are capable of making electric vehicles, but we are fighting to ensure the safety of our supplies," detailing that China's EV sector and raw material supply chain was the result of years of effort that would cost billions of euros to reproduce.