The French government will grant aid of 1.5 billion euros to the Taiwanese company ProLogium so that it can build its factory in France. This will be operational from 2026 and will produce solid batteries for electric cars.
Currently, the vast majority of electric cars and batteries are made in China. If it costs less, there are obviously not only advantages, especially with regard to pollution and working conditions, not always very ethical. To the point that Tesla had notably been accused of employing children in its mines.
A French production
But that is changing. Indeed, more and more companies are now turning to Europe to produce their vehicles and accumulators. One thinks for example of the Chinese giant CATL but also of BYD and more recently of MG. A choice which may however increase the price of its compact, because European labor is more expensive.
But that’s not all, because another company also wants to establish itself with us. This is the Taiwanese firm ProLogium, which has long had plans to set up a production site in Europe. And more particularly in France. Which of course pleases the government, who wants to seduce companies so that they produce in France.
Well it will soon be a reality. Last May, ProLogium announced the installation of a new battery factory in Dunkirk. An announcement that came as its CEO Vincent Yang spoke with Emmanuel Macron at a summit bringing together several business leaders. And the project is progressing very well, sincehe has taken a new stepand not least.
Indeed, the European Commission has just given the green light to France to financially support the Taiwanese firm. The press release explains that the government will pay no less than 1.5 billion euros in subsidies at ProLogium. And this within the framework of the European framework for State aid for research, development and innovation (RDIF).
From 2026
This initiative is the European Union’s response to the Inflation Reduction Act implemented by the United States, encouraging manufacturers to produce on American soil. For its part, Brussels has unveiled a series of measures with the same aim and this seems to be bearing fruit. According to the Minister of Economy, the subsidy will be paid “based on company investment milestones“.
Subsequently, the Asian firm founded in 2006 and which will supply VinFast in particular will launch a public consultation concerning the establishment of its site in the north of France. Construction will begin next year, while the production lines will be operational from 2026.
In total, this plant will show an annual capacity of 48 GWh and should create no less than 3,000 jobs, all for an investment of 5.2 billion euros, as stated in the company’s press release. For comparison, Tesla plans to produce 100 GWh per year at its Gigafactory in Berlin. The American firm could also build a site in France, but for now nothing has been confirmed.
The particularity of ProLogium is that it will produce solid batteries, which should revolutionize the electric car market. These cost less to manufacture and offer greater densitymeaning they will require fewer materials and take up less space.
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