Taiwan’s leading EV battery producer, ProLogium, is in the final phase of discussions with the French government regarding subsidies for their forthcoming battery factory, stated CEO Vincent Yang. The 5.2 billion euro ($5.7 billion) factory will be based in the northern region of France. The finalization of the negotiations is expected to be announced by year’s end.
Details on the subsidy are still under wraps, as both Yang and Jean-Francois Casabonne-Masonnave, the director of the French Office in Taipei, chose not to disclose any figures. French President Emmanuel Macron had previously acknowledged ProLogium’s investment in Dunkirk, a northern region of France, which caught Yang’s appreciation for the French government’s efficiency.
The commencement of the factory’s production is planned for 2026. This will be the fourth gigafactory in northern France, contributing to an expanding cluster specialized in supporting the European electric vehicle industry.
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Yang revealed that the funding will come from various sources, including potential French subsidies, loans, IPO raised funds, and investments from auto manufacturers, such as Mercedes-Benz Group. He stated, “Mercedes has already invested, and other automakers are showing interest.”
Currently, Europe relies heavily on Asia for electric vehicle batteries. Thus, national leaders are implementing a variety of incentives to develop their industry. ProLogium’s project is anticipated to create 3,000 direct jobs and indirectly generate four times more, providing a much-needed boost to an area affected by years of industrial downturn.
Competition for deals among EU member states has been heightened by the ProLogium investment. The agreement with France, ahead of Germany and the Netherlands, has been timely for Macron. Amid protests and strikes against his retirement age increase, the deal showcases the fruits of his pro-business initiatives.
The news is based on the thestar website.
