The European Investment Bank (EIB) is investing 450 million euros, supported by InvestEU, to establish a gigafactory for electric batteries by AESC (Automotive Energy Supply Corporation) in Douai, France.

The investment by the EIB in the gigafactory to be run by AESC from 2025 comprises two operations: €337.2 million in direct loans to the project, and €112.8 million in indirect loans to participating commercial banks. From a production capacity of 9 GWh in its initial phase — slated to power 200 000 electric vehicles per year — the Douai site’s capacity will later be increased through three planned expansions, reaching between 24 GWh and 30 GWh per year by 2030.

This large-scale project represents a total investment of €1.3 billion for the first phase, with the creation of some 1 200 direct jobs over the next three years, and up to 3 000 jobs by 2030. The batteries produced in Douai in the first phase will equip Renault ECHO (new R5) and 4Ever models. In future phases, the gigafactory will also be able to supply other automotive and industrial manufacturers with electric batteries.

Matsumoto Shoichi, CEO of the AESC group, explained, that “the construction of this gigafactory, thanks to the decisive EIB financing, 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.”

The construction project is in line with EU objectives for clean mobility. To achieve a green transition and carbon neutrality as set out in the European Green Deal by 2050, Europe must significantly increase its “Made in EU” battery production capacity. Through this investment, the EIB will further Europe’s transition to a decarbonised economy, strengthen its industrial sovereignty and help transform the automotive sector.

For EIB Vice-President Ambroise Fayolle, “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 the climate bank of the European Union, the EIB is fully mobilised to ensure that the Europe of tomorrow has the capacity to produce electric batteries to respond to the climate emergency, and can 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 major take-off in Europe.”

Paolo Gentiloni, European Commissioner for the Economy, added that “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 vehicle batteries is expected to create thousands of jobs in the north of France, while promoting our transition to climate neutrality.”