The European Commission has said yes: the French State is authorized to pay a subsidy of 1.5 billion euros to the Taiwanese manufacturer ProLogium to install its first European battery factory in Dunkirk (North). The total planned investment is 5.2 billion euros, with 3,000 jobs in the factory and 12,000 indirect jobs. The group will receive the grant of 1.5 billion euros “depending on the company’s investment milestones”said the Ministry of the Economy.
State aid will constitute, according to the company, a “strong support for the ProLogium project for the research and development of a new generation of batteries for electric vehicles as well as for the installation of a 48 gigawatt-hour gigafactory in Dunkirk”enough to equip hundreds of thousands of vehicles each year.
The manufacture of batteries for electric cars has become a major sovereignty issue, and producing them on its soil is now a priority in Europe and North America, while China dominates the sector. “This investment shows the success of France’s catch-up battery strategy: this plant will produce one of the most advanced technologies in the world”welcomed Bercy.
According to the ministry, “this shows that France can be competitive” in the face of the Inflation Reduction Act, the vast American subsidy plan for green industry and the energy transition. And this “thanks to an electric vehicle market that is taking off quickly and thanks to significant subsidies that are quickly implemented”.
Dunkirk is also to host the factory of the French start-up Verkor. The first French battery factory was opened at the end of May by Stellantis, TotalEnergies and Mercedes in Billy-Berclau (Pas-de-Calais), while Renault is to open its own in Douvrin (North) with the Chinese Envision.
Solid electrolyte
The Dunkirk project will contribute to “to promote an innovative value chain for batteries for electric vehicles in Europe, while limiting any distortions of competition”, noted Margrethe Vestager, the European Commissioner for Competition. ProLogium is committed to actively sharing the technical know-how acquired within the framework of its French project with industry and the academic world, specifies the European Commission. If the project proves to be a great success and generates additional net income, the beneficiary “will reimburse France for part of the aid received as part of a recovery mechanism”according to the European Commission.
ProLogium is betting on solid electrolyte batteries, a promising solution in terms of performance and safety, but whose production is not fully controlled. The Taiwanese group’s first large-scale demonstration line is scheduled to come into operation at the end of 2023 in Taoyuan (Taiwan).
ProLogium is due to launch a public consultation around the Dunkirk project in September. Construction of the plant is expected to begin in the second half of 2024, with production starting in late 2026. The facility will be located not far from the Stellantis battery plant, which was inaugurated at the end of May , but also those of Renault and Verkor. ProLogium also announced that it was looking for a location for its research and development center.
The global battle rages around battery manufacturing. In North America, Stellantis has harshly negotiated subsidies from the Canadian government for its Ontario plant, while the United States will lend nearly $10 billion to Ford for the construction of three battery factories.