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June 26, 2021 03:08 AM

Chinese battery investment in France said to create 1,000 jobs

Battery plant will complement Renault's electric car hub

Reuters
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    The Renault 5 electric car, shown as a concept, will be built at the automaker’s factory in Douai. China's Envision AESC is expected to supply its batteries.

    The Renault 5 electric car, shown as a concept, will be built at the automaker’s factory in Douai, likely starting in 2023. China's Envision AESC is expected to supply its batteries.

    PARIS -- An electric car battery plant planned by China's Envision AESC in northern France will create at least new 1,000 positions, a French politician said.

    Two sources close to the matter said this week that Renault had picked Envision to make batteries for its future electric vehicles, including the upcoming Renault 5.

    Xavier Bertrand, from the opposition Les Republicains party, who is running for re-election as head of France's Hauts-de-France region, confirmed Envision's investment in the French factory, AFP reported.

    Bertrand was quoted by AFP as saying that the 1,000 jobs that will be created initially could reach 2,500 in the longer term.

    The investment and details on jobs are expected to be confirmed on Monday by President Emmanuel Macron, the sources said. One of the sources said the plant involved an investment of around 2 billion euros from Envision.

    The Douai battery factory will complement Renault's electric car hub known as "Renault ElectriCity" born from pooling three of its plants in northern France, Douai, Ruitz and Maubeuge. The hub aims to turn out 400,000 vehicles a year by 2025.

    France is trying to push its own national champions to produce batteries for cars, though politicians have welcomed the Chinese investment.

    ACC, a venture backed by Renault's rival Stellantis and Saft, a unit of TotalEnergies, will also have a battery plant in northern France.

    A shift away from diesel engines in the auto industry is likely to spur job cuts in the coming years, or push carmakers to retrain workers and find new avenues for job creation, under pressure from politicians.

    Renault last year announced plans to cut 4,600 jobs in France as it trims costs, 10 years after Peugeot maker PSA, now part of Stellantis, went through a drastic restructuring.

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