Chinese power battery maker Envision AESC will build a power battery factory in France with a total investment that may reach $2.9 billion, Bloomberg reported recently.
The company's overall planned capacity by 2030 is about 43 GWh, half of which will be supplied to local French automakers, the report said.
The official announcement of Envision AESC's new battery plant will be made by French President Emmanuel Macron, according to the report.
Envision Group acquired the power battery business of Japanese multinational automaker Nissan Motor in April 2019 to create Envision AESC.
Macron had a video conference in November 2020 with Zhang Lei, executive chairman of the board of Envision AESC, to communicate proposals on how France can lead economic revitalization through green and digital industry development.
It has also been previously reported in the media that Envision AESC will expand its European battery factory capacity.
The new battery plant will be located in the northern French city of Douai, which is also the location of Renault's research and development center for its next generation of new electric vehicles, a testament to Renault S.A's commitment to the electric transition, the reports said.
The move will accelerate the battle for power cell capacity among European automakers. Car companies including Porsche, Volvo and Volkswagen have recently released their development strategies or cooperation projects in the battery field.
Up to now, there is no power battery factory built in France.
According to market research firm SNE Research, demand for electric vehicle batteries in Europe is expected to be 406 GWh by 2023, while supply is expected to be 335 GWh.
That leaves Europe with a power battery supply shortage of about 18 percent, a situation that will worsen to a supply shortage of about 40 percent by 2025, according to SNE Research.