EIB invests €450m in French EV battery gigafactory

The European Investment Bank (EIB) is investing €450 million ($473.9 million) to provide battery supply of 9GWh to power 200,000 electric vehicles produced by Renault annually from 2025.

The investment will be used for a gigafactory operated by Automotive Energy Supply Corporation (AESC) beginning in 2025.

The investment involves €337.2 million ($355.1 million) in direct loans to the project and €112.8 million ($118.8 million) in indirect loans to participating commercial banks.

From a production capacity of 9GWh in its initial phase, the Douai site’s capacity will later be increased through three planned expansions, reaching between 24GWh and 30GWh per year by 2030.

The project involves a total investment of €1.3 billion ($1.4 billion) for the first phase and will lead to the creation of around 1,200 direct jobs over the next three years, with the potential to increase to 3,000 jobs by 2030.

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The batteries produced at the Douai site in the first phase will be used in Renault ECHO (new R5) and 4Ever models. In subsequent phases, the gigafactory will also be able to supply electric batteries to other automotive and industrial manufacturers.

The construction of the project aligns with the European Union’s goals for clean mobility. To meet the EU’s objectives for a green transition and carbon neutrality by 2050, there is a need to significantly boost battery production within the EU.

AESC, a global player in high-performance electric vehicle battery development and manufacturing, already has a presence in the United States, the United Kingdom, Spain, China, and Japan.

With this new facility in France, the group aims to increase battery production for European car manufacturers, accelerating the transition to competitive, decarbonised mobility technology solutions in the sector.

Commented Matsumoto Shoichi, CEO of AESC: “Thanks to decisive financing from the European Investment Bank, the construction of this gigafactory is part of Europe’s goal of reindustrialising the region in a low-carbon manner.

“This includes the creation of new, high value-added jobs while providing access to our state-of-the-art technology. We are also proud to be able to advance clean mobility by making batteries and electric vehicles affordable.”