France seeks European battery deal as electric car growth accelerates

Reuters  |  PARIS 

(Reuters) - called on Thursday for European and carmakers to create a consortium able to meet the growing demand for electric vehicles and compete with dominant Asian producers.

"It (a consortium) must be at the European level because the French market alone will not be enough," Minister François de Rugy told following a cabinet meeting.

Europe, with the backing of the European Commission, is racing to set up a viable industrial battery sector as the bloc's automakers mostly depend on Asian suppliers.

Asked after if there was a potential for deal between the carmakers and such as French firm Total through its Saft, de Rugy said: "We are hoping to see some progress early next year."

"We support the creation of a European battery sector. We are working with the industry, particular those in France, to build this sector," de Rugy said.

Several projects have been announced in recent months to build battery plants in and last week the said it had set aside around 1 billion euros ($1.14 billion) to support battery cell production.

aims to have 30 percent of such production coming from and by 2030.

($1 = 0.8760 euros)

(Reporting by Jean-Baptiste Vey and Gilles Guillaume; Writing by Bate Felix; Editing by Alexander Smith)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 22 2018. 17:50 IST