EIB with support from InvestEU invests €450 million in the construction of AESC electric battery gigafactory in Douai

Construction of electric battery gigafactory in Douai

• This funding will provide 9 GWh of batteries to power 200000 electric vehicles produced each year from 2025 by the manufacturer Renault.
• It is part of the European Investment Bank's massive support strategy for a transition to a decarbonised industry in Europe.
• This investment in one of the four battery gigafactories planned in the Hauts region Hauts-de-de France benefits from the guarantee of the InvestEU programme set up by the European Commission.

The EIB's investment in the gigafactory that AESC (Automotive Energy Supply Corporation) will operate from 2025 is carried out in the form of two operations: €337.2 million in direct loans to the project and EUR 112.8 million in indirect loans to participating commercial banks. With 9 GWh in its initial phase, to power 200000 electric vehicles per year, the Douai site will then see its capacity gradually increased to reach a production of 24 GWh to 30 GWh/year by 2030, thanks to the realisation of three planned expansions.

This large-scale project represents a total investment of €1.3 billion for this first phase with the creation of some 1,200 direct jobs in the next three years and up to 3000 jobs by 2030. The batteries produced in Douai will notably equip the future ECHO models (new R5) and 4Ever produced by Renault. The future phases of this gigafactory will be able to supply Renault as well as other automotive and industrial manufacturers with electric batteries in the future.

The construction of this gigafactory in France is in line with the EU's ambitions for clean mobility. To achieve its green transition and achieve carbon neutrality as set out in the European Green Deal by 2050, Europe will have to significantly increase its battery production capacity “Made in EU”. Through this investment, the EIB contributes to the transition to a decarbonised economy, the strengthening of its industrial sovereignty and the transformation of the automotive sector.

A global player in the development and manufacture of high-performance batteries for electric vehicles, AESC is already present in the US, UK, Spain, China and Japan. Thanks to this first plant in France, the group will be able to increase its battery production for European car manufacturers and thus accelerate the transition of the sector to competitive decarbonised mobility technology solutions.

For Paolo Gentiloni, Commissioner for the Economy, "Investing in clean mobility helps us to reach our climate targets and at the same time creates jobs and promotes sustainable growth. With the support of InvestEU, this investment in the production of electric vehicles' batteries is expected to create thousands of jobs in the north of France, while promoting our transition to climate neutrality."

For Ambroise Fayolle, EIB Vice-President, “This strategic investment in AESC allows Europe and its automotive industry to acquire industrial tools near their production sites as will be the case for the “ElectriCity” cluster developed by Renault in Douai. As a climate bank of the European Union, the EIB is fully mobilised to ensure that Europe tomorrow has the capacity to produce electric batteries to respond to the climate emergency and strengthen the competitiveness of its manufacturers by relocating their value chains to local ecosystems creating new jobs. That is why I welcome the introduction of this gigafactory at a time when the electric car market is experiencing a very important take-off in Europe.”

For Matsumoto Shoichi, CEO of the AESC group, “Thanks to the decisive financing of the European Investment Bank, the construction of this gigafactory contributes to the European will to decarbonise the territory. This includes the creation of new jobs with high added value and 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.”

About the EIB

Created by the Treaty of Rome in 1957, the European Investment Bank (EIB) is the EU's long-term financing institution, and its shareholders are the 27 member states. It provides financing for high-quality investments that help to achieve Europe's key objectives, such as the European Green Pact, which aims to make the EU carbon neutral by 2050. As the EU's climate bank, it aims to encourage the emergence and deployment of new technologies to meet the challenges of the energy transition to a new low-carbon growth model. It has already participated in the financing of several battery gigafactories in Europe, such as Northvolt's pioneering giant plant in Skelleftea, northern Sweden, starting in 2018. It is also involved in several other gigafactory projects in France. In 2022, the EIB's investments in France in renewable energies, clean mobility and energy efficiency amounted to €5.9 billion , representing 70% of its financing.

About AESC

AESC (Automotive Energy Supply Corporation) is a world leader in the development and manufacture of high-performance batteries for electric vehicles and energy storage systems. The group's cutting-edge technology and reliability promote and accelerate the transition to clean energy solutions. Thanks to rapid expansion, AESC batteries will soon power several million electric vehicles for the world's leading automakers.

AESC is creating the only stand-alone company focused exclusively on advanced battery technologies. Incorporated and headquartered in Japan, the company has a globally diversified management team, ownership structure and production footprint, with major facilities in the USA, UK, France, Spain, China and Japan.

About InvestEU

The InvestEU program provides the European Union with essential long-term financing, mobilizing large volumes of public and private funds to support a sustainable recovery. It also helps to attract private investment in support of key EU priorities, such as the Green Pact for Europe and the digital transition. The InvestEU program brings together under a single structure the multiple EU financial instruments currently available to support investment in the European Union, making the financing of investment projects in Europe simpler, more efficient and more flexible. The three components of the program are the Fund, the advisory platform and the InvestEU portal. The InvestEU Fund is implemented through financial partners who invest in projects using the €26.2 billion EU budget guarantee. The overall budget guarantee supports the investment projects of the implementing partners and increases their risk-taking capacity, mobilising at least €372 billion in additional investment.