France to inaugurate gigafactories in north

France is inaugurationing its first gigafactories in the north.

France inaugurates the first of four gigafactories in the north, ACC inaugurates its gigafactory in northern France.

France is going to inaugurate a battery-making gigafactory on Tuesday, the first of four such plants that European and Asian companies plan to build in the north of the country.

The creation of automotive cell company, a joint venture between Stellantis, Mercedes and TotalEnergies, involves a total investment of 2 billion euros $2.20 billion - with the French state and local authorities providing nearly half.

The battle between European governments to attract global car makers is intense as they seek to bring the supply of components for electric vehicles closer to their main markets.

ACC's new plant marks a significant milestone in Europe's transformation to make the auto industry more robust, competitive, and sustainable, also in the electric era, said Ola K llenius, chief executive officer of Mercedes-Benz.

The plant will be ready to start production of lithium-ion batteries later this year, with an initial capacity of 13 gigawatt hours GWh to be ramped up to 40 GWh, enough to fit some 500,000 cars a year. The new plan is expected to generate up to 2,000 jobs by the end of this year, the companies and regional authorities have said.

Taiwan and China's ProLogium and China's Envision AESC are also planning gigafactories in France's northern region around the port of Dunkirk, while Renault has established a partnership with local start-up Verkor in the same area to produce batteries for its premium and Alpine electric models.

Europe is heavily reliant on batteries made in Asia for electric cars, and national leaders are offering various incentives to spur the industry.

The United States recently passed its $430 billion Inflation Reduction Act, which offers substantial tax subsidies to reduce carbon emissions while boosting domestic production and manufacturing.

Macron, a French President Emmanuel Macron, has announced a production target of 2 million electric vehicles made in the Dunkirk region by 2030.