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Envision Group, a Chinese green tech company, plans to invest 2 billion euros ($2.4 billion) in a battery plant in France to supply Renault Group, demonstrating how Asian companies are vying for a large share of Europe’s electric vehicle supply chain.
Envision and the French automaker, which is in a car-making alliance with Japan’s Nissan Motor and Mitsubishi Motors, announced the plans on Monday. Zhang Lei, Envision’s founder and CEO, is scheduled to meet French President Emmanuel Macron and automaker officials during a visit to France on Monday, according to a group spokesperson.
The factory will be built in collaboration with Renault in Douai, northern France, close to the automaker’s existing facility. Renault said in a statement on Monday that its capacity will be 9 gigatonnes per year by 2024 and 24 gigatonnes by 2030.
Envision Group has made no secret of its desire to expand into a larger regional market.
“This first phase development will enable future large-scale investment to grow the local supply chain and develop the entire life cycle opportunities of batteries, including energy storage, battery reuse, smart charging, and closed loop recycling,” Zhang said.
It will be the group’s battery unit, Envision AESC, which it purchased from Nissan in 2018,’s fourth overseas factory.
It is following in the footsteps of other Chinese battery manufacturers, including market leader Contemporary Amperex Technology, in attempting to cash in on Europe’s growing interest in electric vehicles. In Europe, about 1.4 million electric vehicles were sold last year, representing a 137 percent increase year over year.
CATL plans to build a 1.8 billion euro facility in Germany, while SVOLT Energy Technology and Farasis Energy have announced investments in the country totaling 2 billion euros and 600 million euros, respectively.
With a total capacity of 7.5 GWh per year, Envision AESC, based in Kanagawa, Japan, also has facilities in Sunderland, United Kingdom, and Tennessee, United States. Envision AESC is building a 20 GWh per year plant in Wuxi, eastern China, in three phases, with the capacity to supply batteries for 400,000 vehicles.
Envision Group is also recognised for its wind turbines and its Internet of Things operating system for data management, both of which have been used by businesses and governments around the world, including Singapore.
Renault claims that its cooperation with Envision would help it become a more efficient electric vehicle player, delivering “popular, affordable, and cost-effective” EVs and helping it meet its carbon-zero goals.
Renault has also inked a Memorandum of Understanding with Verkor, a French startup, to collaborate on the development and manufacture of high-performance batteries as early as next year. Renault is also considering a stake in Verkor of more than 20%.
“Our recent strategic agreements with Envision AESC and Verkor considerably strengthen our position as we aim to produce one million electric vehicles in Europe by 2030,” said Luca de Meo, Renault’s CEO.
Renault estimates that by 2030, the projects will have created 4,500 direct jobs. The French government, which holds a share in Renault, considers the news significant. Prior to an election next year, Macron intends to boost the economy, which contracted by 8% in 2020.
