It highlights the race between European governments to attract
global car makers as they seek to bring the supply of components
for electric vehicles closer to their main markets.
"ACC's new plant marks a key milestone in Europe's
transformation to make its auto industry more resilient,
competitive, and sustainable, also in the electric era," Ola
Källenius, Chief Executive Officer of Mercedes-Benz, said ahead
of the inauguration.
The plant will start production of lithium-ion batteries later
this year with an initial capacity of 13 gigawatt hours (GWh),
to be ramped up to around 40 GWh, enough to fit some 500,000
cars a year. It is expected to help create up to 2,000 jobs by
2030, the companies and regional authorities have said.
Taiwan's ProLogium and China's Envision AESC have also announced
plans to build gigafactories in France's northern region around
the port of Dunkirk, while Renault has set up a partnership with
local start-up Verkor in the same area to produce batteries for
its premium and Alpine electric models.
Europe largely depends on batteries made in Asia for electric
cars, and national leaders are offering various incentives to
kickstart the industry.
That has become more urgent since the United States last year
passed its $430 billion Inflation Reduction Act, which includes
major tax subsidies to cut carbon emissions while boosting
domestic production and manufacturing.
French President Emmanuel Macron, who personally lobbied to
secure at least one the gigafactories in the Dunkirk region, has
set a production target of 2 million electric vehicles made in
France by 2030.
($1 = 0.9084 euros)
(Reporting by Gilles Guillaume, writing by Silvia Aloisi;
editing by Barbara Lewis)
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