The green light from the European Commission has arrived. The French State is authorized to pay a subsidy of 1.5 billion euros to the Taiwanese manufacturer ProLogium to set up its first European battery factory in Dunkirk, in the North.
The total investment planned is 5.2 billion euros, with the key to 3,000 jobs in the factory and 12,000, indirect, for the territory.
Opening planned for 2026
“It’s an investment aid, which allows us to strengthen the means of research and innovation”, indicated Gilles Normand, president of ProLogium Europe. The opening of the Dunkirk gigafactory is scheduled for 2026, and should eventually produce 48 gigawatt hours per year, enough to equip 500,000 to 750,000 vehicles.
A subsidy of 1.5 billion euros will be received by the group “depending on the company’s investment milestones”, said the Ministry of the Economy. “This investment shows the success of France’s catch-up strategy on batteries: this plant will produce one of the most advanced technologies in the world”, welcomed the Ministry of the Economy. ProLogium will install its battery factory in Dunkirk on the large seaport, a few meters from the future factory of the French start-up Verkor.
The epicenter of batteries in France
Thus, the North is becoming the epicenter of batteries in France: the first factory was opened at the end of May by Stellantis, Total and Mercedes in Billy-Berclau (Pas-de-Calais), as part of a project (“ACC” ) supported to the tune of 1.3 billion euros by the French and German States. In 2024, Renault should open its own in Douai (North) with the Chinese Envision.
ProLogium’s Dunkirk project will contribute to “promoting an innovative value chain for batteries for electric vehicles in Europe, while limiting any distortions of competition”, underlined Margrethe Vestager, the European Commissioner for Competition. ProLogium is betting on solid electrolyte batteries, a promising solution in terms of performance and safety, but whose mass production has not yet been mastered.
Start of works in the second half of 2024
In addition, if the project proves to be a great success and generates additional net income, the beneficiary “will repay to France part of the aid received within the framework of a recovery mechanism”, according to the Commission.
ProLogium is due to launch a public consultation on the Dunkirk project on September 22 and has already started recruiting. Construction of the plant is expected to begin in the second half of 2024. The Taiwanese group has also indicated that it is looking for a location for its research and development center.