France and Germany commit to European electric battery industry (updated)
02/05/2019 17:26
(Adds quotes, details throughout)
By Myriam Rivet
PARIS, May 2 (Reuters) - France and Germany agreed on
Thursday to jointly invest in the European production of
electric vehicle batteries, taking on the United States and
China in what is emerging as one of the world's most competitive
industries.
French Finance Minister Bruno Le Maire said the goal was to
establish two production plants over the next four years, one in
France and one in Germany, with around 1,500 employees in each.
Initially the plants would produce enhanced liquid batteries
before moving to solid-state technology by 2025-26.
Le Maire said a total of 5-6 billion euros ($5.6-$6.7
billion) would be invested.
"This is of strategic importance for Europe," said Le Maire,
speaking alongside his German counterpart Peter Altmaier and the
European commissioner for energy, Maros Sefcovic, whose approval
was needed for the provision of public subsidies.
Le Maire added that the deal would allow Europe to remain
competitive against the U.S and China.
Earlier this week, France and Germany asked the European
Commission to approve state subsidies for a cross-border battery
cell consortium including carmaker PSA PEUP.PA , German
subsidiary Opel and French battery maker Saft TOTF.PA .
A number of battery projects have been announced in recent
months, including the formation of industry consortiums designed
to reduce dependence on Asian battery supplies and ensure
European investment does not lag behind. urn:newsml:reuters.com:*:nL8N1XI67P
France's Saft, owned by energy company Total TOTF.PA
produces a range of batteries, including for back-up power and
industrial applications, but not yet for electric vehicles.
Last year, it created an alliance with German industrial
group Siemens SIEGn.DE , Solvay SOLB.BR and Manz M5ZG.DE to
develop a new generation of batteries.
The group will focus on advanced high-density lithium-ion
and solid-state technology, targeting the market for electric
vehicles and the railway and marine sectors, among
others. urn:newsml:reuters.com:*:nL8N1QB6UC
Saft also recently struck a deal to expand its presence in
China. urn:newsml:reuters.com:*:nL8N21M13N
Altmaier said it was clear electric vehicles were set to
overturn the global car industry's value chain, meaning Europe
had to ensure it was well positioned to compete.
"The challenge for Europe is to continue to build the best
and most successful cars in the world, and that is why we must
build up industrial competence in those areas to which the value
creation will shift," he said.
"Our aim is not just to meet the European car industry's
demand," he said. "We want to export internationally, making
clear that batteries 'made in Europe' will be an important
kitemark."
($1 = 0.8945 euros)
(Reporting by Myriam Rivet in Paris and Thomas Escritt in
Berlin; Writing by Luke Baker; Editing by Sudip Kar-Gupta and
Kirsten Donovan)
((luke.baker@thomsonreuters.com; +33 01 49 49 51 30; Reuters
Messaging: luke.baker.thomsonreuters.com@reuters.net))