The European Commission has approved a €48 million French State aid measure to support Envision AESC France in establishing a new factory for lithium-ion battery production in Douai, Hauts-de-France. This initiative aligns with the EU's strategic goals of job creation, regional development, and promoting a greener economy.

French initiative for battery production

The French government has notified the Commission of its plan to assist Envision AESC France in the first phase of its new factory. This plant will produce lithium-ion batteries for electric vehicles, with an initial annual capacity of 9 GWh.

The financial aid will be provided as a direct grant totaling €48 million. The project is expected to generate approximately 1,000 direct jobs in the region, along with additional indirect employment opportunities. Designed to be carbon-neutral, the factory will be situated in Hauts-de-France, a region eligible for regional aid under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU).

Commission's assessment and approval

The European Commission assessed the measure under EU State aid rules, particularly Article 107(3)(c) of the TFEU and the 2022 Regional Aid Guidelines. It concluded that the aid would promote job creation, economic growth, and competitiveness in a disadvantaged area, while ensuring an incentive effect by enabling the project with public support. The measure’s impact on competition and trade within the EU was deemed minimal, as the aid is necessary for establishing the new factory. Additionally, the aid was found to be proportionate, limited to the required investment, and within France’s regional aid limits. Consequently, the Commission approved the measure.

On January 21, 2022, the Commission approved France's regional aid map for the period from January 1, 2022, to December 31, 2027. This framework has been revised multiple times, with amendments approved in May 2022, November 2023, and September 2024.

The approval of the €48 million aid measure underscores the EU's commitment to fostering economic development in disadvantaged regions while promoting sustainability. Envision AESC France’s new factory in Douai is expected to contribute significantly to the green transition and strengthen the European electric vehicle supply chain.