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Released February 25, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--France and Germany have agreed on a multibillion-euro plan to construct two electric vehicles (EV) battery production plants in order to reduce the reliance of their carmakers on batteries from the Asian companies that dominate the market.
French President Emmanuel Macron announced the proposed deal, which will see the construction of a giant plant in each country, and promised France would offer financial support to the value of 700 million euro ($793 million) over the next five years.
"The project will lead to the building of two battery factories, one in France and the other one in Germany," Macron told a meeting of the International Organisation of Motor Vehicle Manufacturers in Paris. "As the president of France, I cannot be happy with a situation where 100% of the batteries of my electric vehicles are produced in Asia. In terms of sovereignty and independence, I think it's not good in the long run for our industry and the European industry to be 100% reliant on non-Europeans. So that's why, according to me, on batteries we need a European wake-up call."
Germany, Europe's largest carmaker, is falling well short of its goal to have 1 million pure EVs on its roads by the end of the decade. Today that total stands at just 50,000 out of a national fleet of 45 million cars. In order to boost activity, the government and carmakers including Volkswagen and BMW have jointly allotted one billion euro ($1.2 billion) in grants and incentives to buyers of EVs.
According to the European Commission (EC) in 2015, the world's total lithium-ion cell manufacturing capacity amounted to 60 gigawatt-hours (GWh), of which 88% was supplied by China, Japan and Korea. China's share alone is 50%, but there are up to nine new factories being constructed there which will raise production capacity from 16 GWh at present to a total of 107 GWh in 2020 and 120 GWh in 2021, increasing China's share in global lithium ion battery production to 65%.
Last March, Industrial Info reported that the European Union (EU) wants to capture the lion's share of the projected 250 billion-euro ($304 billion) lithium ion battery market. The EU Battery Alliance, a group of more than 50 companies that was established by EC Vice President for Energy Union Maros Sefcovic last October, wants to build between 10 and 20 European battery "Gigafactories." For additional information, see March 3, 2018, article - Europe Plans Assault on $300 Billion Battery Market.
Industrial Info is tracking a growing number of significant EV battery plant projects in Sweden, Poland, Hungary and Germany. The largest confirmed project under way is the Northvolt AB project in Skelleftea, Sweden, to produce 8 GWh of battery capacity starting in 2020. Three additional expansion projects are planned to boost production to 32 GWh by 2023. Volkswagen AG, which has revealed the most ambitious EV plans of any European carmaker, is seeking permission for its own gigafactory on a 690-acre site in Salzgitter, Germany, where a pilot battery production operation is underway. The project could cost up to $11.3 billion. Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California) has tipped Germany as a possible location for a gigafactory to secure a strong European foothold for its car and battery range. Industrial Info is tracking the company's initial scoping for a potential $6.2 billion plant for a battery and EV manufacturing plant in the Alentejo region of Portugal.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
French President Emmanuel Macron announced the proposed deal, which will see the construction of a giant plant in each country, and promised France would offer financial support to the value of 700 million euro ($793 million) over the next five years.
"The project will lead to the building of two battery factories, one in France and the other one in Germany," Macron told a meeting of the International Organisation of Motor Vehicle Manufacturers in Paris. "As the president of France, I cannot be happy with a situation where 100% of the batteries of my electric vehicles are produced in Asia. In terms of sovereignty and independence, I think it's not good in the long run for our industry and the European industry to be 100% reliant on non-Europeans. So that's why, according to me, on batteries we need a European wake-up call."
Germany, Europe's largest carmaker, is falling well short of its goal to have 1 million pure EVs on its roads by the end of the decade. Today that total stands at just 50,000 out of a national fleet of 45 million cars. In order to boost activity, the government and carmakers including Volkswagen and BMW have jointly allotted one billion euro ($1.2 billion) in grants and incentives to buyers of EVs.
According to the European Commission (EC) in 2015, the world's total lithium-ion cell manufacturing capacity amounted to 60 gigawatt-hours (GWh), of which 88% was supplied by China, Japan and Korea. China's share alone is 50%, but there are up to nine new factories being constructed there which will raise production capacity from 16 GWh at present to a total of 107 GWh in 2020 and 120 GWh in 2021, increasing China's share in global lithium ion battery production to 65%.
Last March, Industrial Info reported that the European Union (EU) wants to capture the lion's share of the projected 250 billion-euro ($304 billion) lithium ion battery market. The EU Battery Alliance, a group of more than 50 companies that was established by EC Vice President for Energy Union Maros Sefcovic last October, wants to build between 10 and 20 European battery "Gigafactories." For additional information, see March 3, 2018, article - Europe Plans Assault on $300 Billion Battery Market.
Industrial Info is tracking a growing number of significant EV battery plant projects in Sweden, Poland, Hungary and Germany. The largest confirmed project under way is the Northvolt AB project in Skelleftea, Sweden, to produce 8 GWh of battery capacity starting in 2020. Three additional expansion projects are planned to boost production to 32 GWh by 2023. Volkswagen AG, which has revealed the most ambitious EV plans of any European carmaker, is seeking permission for its own gigafactory on a 690-acre site in Salzgitter, Germany, where a pilot battery production operation is underway. The project could cost up to $11.3 billion. Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California) has tipped Germany as a possible location for a gigafactory to secure a strong European foothold for its car and battery range. Industrial Info is tracking the company's initial scoping for a potential $6.2 billion plant for a battery and EV manufacturing plant in the Alentejo region of Portugal.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
