The European Commission has sanctioned a €48 million state aid initiative by France to bolster Envision AESC France’s establishment of a new lithium-ion battery manufacturing facility in Douai, Hauts-de-France. This support aligns with the European Union’s strategic goals focused on job creation, regional economic development, and the advancement of a green economy.
The approved aid, provided as a direct grant, will facilitate the first phase of the Douai plant, which is projected to have an annual production capacity of 9 GWh of lithium-ion batteries tailored for electric vehicles (EVs). This expansion is expected to generate approximately 1,000 direct employment opportunities, in addition to creating numerous indirect jobs within the region.
Designed with sustainability in mind, the new factory aims to achieve carbon neutrality, contributing to the EU’s broader environmental objectives. The location in Hauts-de-France qualifies the project for regional aid under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which permits member states to support economic development in less advantaged areas.
In evaluating the measure, the European Commission assessed its compliance with EU State aid regulations, particularly Article 107(3)(c) of the TFEU and the 2022 Regional Aid Guidelines (RAG). The Commission concluded that the aid would significantly enhance job creation and economic growth in a disadvantaged region while having a minimal impact on competition and trade within the EU. Moreover, the support was determined to be essential for the establishment of Envision AESC France’s new manufacturing facility, which is expected to enhance the competitiveness of the regional economy.
The decision underscores the EU’s commitment to fostering innovation and sustainable development within the battery manufacturing sector, a critical component of the burgeoning electric vehicle market. By supporting the expansion of production capacity, the initiative not only addresses immediate economic and employment needs but also contributes to the long-term resilience and sustainability of the regional economy.
The non-confidential version of the Commission’s decision will be accessible under case number SA.109228 in the State aid register on the European Commission’s competition website once all confidentiality concerns have been addressed. This transparency ensures that stakeholders and the public can review the details of the aid measure and its alignment with EU policy objectives.
Source: European Commission
