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    Status
    First signature
    Signed
    28/09/2023
    Amount
    EUR 450,000,000
    Countries
    France
    Sector(s)
    Industry
    See more

    Signature(s)

    Amount
    € 450,000,000
    Countries
    Sector(s)
    France : € 450,000,000
    Industry : € 450,000,000
    Signature date(s)
    28/09/2023 : € 19,500,000
    21/12/2023 : € 56,400,000
    21/12/2023 : € 56,400,000
    28/09/2023 : € 317,700,000
    Link to source

    Summary sheet

    Release date
    18 July 2022
    Status
    Reference
    Signed | 28/09/2023
    20220168
    Project name
    Promoter - financial intermediary
    DOUAI EV BATTERY GIGAFACTORY
    ENVISION AESC GROUP LTD
    Proposed EIB finance (Approximate amount)
    Total cost (Approximate amount)
    EUR 450 million
    EUR 1317 million
    Location
    Sector(s)
    Description
    Objectives

    The project will finance the construction and operation of an advanced manufacturing plant in Douai, France.

    The aim is to supply the Renault Group with a new generation of Lithium-ion batteries for Electric Vehicles (EV). The project is eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest.

    Additionality and Impact

    The project concerns the implementation in Europe of an advanced manufacturing technology for the production of advanced li-ion battery cells. The latter is considered a key enabler for the development of the European EV industry.


    The company achieved an important milestone in the prototyping of the cells and now needs to follow suit with getting it in a stable serial production at acceptable scrap rate, the hardest part in this high-tech industry by some accounts.


    The project could make a substantial contribution to the development of the EU-based battery industry. The knowledge spillovers in Europe are related to the cooperation with the French EPC constructor for the development and construction of the highly specialised building (clean room, utilities), and with regional technical schools for the up/re-skilling of the labour force.


    The project caters for the transition in e-mobility by supplying the growing demand in Europe for EV Batteries with advanced battery cells. It therefore qualifies in full as Climate Action (mitigation).


    The project is located in a cohesion region where it will create significant long-term skilled employment. It therefore qualifies in full under Cohesion. 


    The operation qualifies for InvestEU eligibility under the following main policy priority areas:

    SIW:

    1.1.6 Modernisation and decarbonisation of industry

    (a)       decarbonisation investments in industries, in particular transport, aiming at significant reduction or avoidance of GHG emissions; and

    (c)       investments in assets enabling the flow of low-carbon energy.


    Europe must master the de-carbonisation of its transport sector. This passes through the transformation of its automotive industry from supplying vehicles running on carbon fuels to vehicles running on electricity. This in turn requires the build-up of an innovative European battery industry. Europe lags behind in the development and industrialisation of battery technologies and the related know-how.

    The project addresses these failures.

    The project:

    (a) has the nature of a public good for which the operator or company cannot capture sufficient financial benefits (knowledge dissemination through technology transfer and education and skills of the local labour, and a lasting specialised infrastructure being made available at no or negligible cost, both in a Cohesion Region);

    (b) generates externalities which the operator or company fails to internalise, such as climate mitigation.

    The financing also addresses the market failure of insufficient investment in a transition region and thus supporting the strengthening of the EU's economic, social and territorial cohesion. 


    The Project's external benefits are potentially high as it contributes to the establishment of an industrial value chain in Europe of a competitive battery technology. The Project will lead to important knowledge transfer to Europe. It will deploy advanced manufacturing activities and related high skilled jobs in Europe. The Project will furthermore help creating the conditions for the deployment of e-mobility, and the development of a cleaner and more sustainable transport system In Europe and lead to lower emissions of pollutants (health benefits) and CO2 (climate benefits) on the roads.


    The proposed non-recourse structure is innovative for this type of project, traditionally financed through corporate loans by commercial banks at sponsors' level. EIB's capability to appraise and structure the Project with unmatched terms and conditions on the commercial market would bring significant added value to the Promoter. EIB will not only close a large financing gap but also crowd in other financiers. The increased risk profile of the loans (loan tenor potentially going beyond the Renault offtake contract and being exposed to a mix of substantial market / technology / offtaker creditworthiness risks, subject to acceptability being confirmed during appraisal) beyond what the Bank traditionally regards as acceptable, can be considered thanks to Invest EU protection. 


    Considering the above, the project will generate economic benefits that are greater than those captured by the investor's financial returns.


    The operation would not be carried out to the same extent by the EIB without the InvestEU support.

    Environmental aspects
    Procurement

    The implementation of an industrial scale plant for serial production of lithium-ion battery cells requires a full environmental impact assessment (EIA) or a screening decision in accordance with the EIA directive. This and other environmental, climate and social aspects will be appraised during project due diligence.

    The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.

    Comments

    The project concerns a first implementation in Europe of an advanced manufacturing technology tailored to the production of a sub-type of advanced li-ion battery cells. The latter is considered a key enabler for the development of the European EV industry. The project could make a substantial contribution to the development of the EU-based battery industry. The knowledge spillovers in Europe are related to the cooperation with the French EPC constructor for the development and construction of the highly specialised building (clean room, utilities), and with regional technical schools for the up/re-skilling of the labour force. The project caters for the transition in e-mobility by supplying the growing demand in Europe for EV batteries with advanced battery cells. It therefore qualifies in full as Climate Action (mitigation). The project is located in a cohesion region where it will create significant long-term skilled employment. It therefore qualifies in full under EU Cohesion.

    Link to source

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Documents

    Environmental and Social Impact Assessment (ESIA) - DOUAI EV BATTERY GIGAFACTORY - Etude d'impact
    Publication Date
    28 Feb 2023
    Document language
    Main Topic
    Lending
    Document Number
    160491980
    Document Focus
    Environmental Information
    Project Number
    20220168
    Sector(s)
    Regions
    Countries
    Publicly available
    Download now
    Environmental and Social Data Sheet (ESDS) - DOUAI EV BATTERY GIGAFACTORY
    Publication Date
    18 Apr 2023
    Document language
    Main Topic
    Lending
    Document Number
    162765287
    Document Focus
    Environmental Information
    Project Number
    20220168
    Sector(s)
    Regions
    Countries
    Publicly available
    Download now

    News & Stories

    Inside the project

    How and Why

    An automotive ecosystem in northern France

    Why

    • Global demand for lithium-ion batteries is rising
    • Europe needs to scale up its battery production capacity
    • Electric vehicle cut emissions and boost green transition
    • Cohesion, bringing Hauts-de-France in line with EU economies

    How

    • Lithium-ion batteries for Renault’s electric cars, which drive much cleaner
    • Factory with combined capacity of 9 Gigawatt-hours, which will increase to between 24 and 30 gigawatt-hours by 2030
    • More jobs and new technologies to the Hauts-de-France region

    Impact

    Boosting the European battery industry

    • The gigafactory has the capacity to power 200 000 electric cars each year in its initial phase
    • Reindustrialization of the Hauts-de-France region, known as the new “battery valley”
    • Creation of 1 200 direct jobs over the next three years and up to 3 000 jobs by 2030

    This gigafactory is a beacon of progress, not only for AESC but for France and Europe’s green ambitions. We are proud to be able to advance clean mobility by making batteries and electric vehicles more affordable
    Matsumoto Shoichi

    chief executive, AESC

    €449

    million

    The European Investment Bank provided over €449 million in financing to AESC

    Play video

    4:20

    custom-preview

    Story

    Charging up France

    Anastasia Walch-Guinebert has always enjoyed solving problems and figuring out ways to improve things. She also found the continuous innovation in the field of energy transition fascinating. That’s why she works as a process engineer at the Japan-headquartered, Automotive Energy Supply Corporation (AESC), a position that allows her to merge both these interests. At the big, international battery company, she is improving the production of batteries for electric vehicles to ensure that they are safe, high-quality, effective, and environmentally sustainable.

    “When there is an issue with the quality of product, we are the ones responsible for assessing the process and finding solutions to the problems,” she says. “This job allows me to have a positive impact on the environment and the world around me.”

    With AESC planning to operate a battery gigafactory in Douai, in the Hauts-de-France, by 2025, her role will take on an even greater importance.

    Douai, once known for its mining industry, has evolved into an automotive hub, with companies like Renault having their manufacturing plants here. Our project will add to this growing automotive ecosystem.
    Anastasia Walch-Guinebert

    process engineer, AESC

    AESC is bringing their state-of-the-art know-how to France that will contribute to the sustainable development of the battery industry in Europe. The project will also support the reindustrialization of the Hauts-de-France region, known as the new “battery valley”, and accompany Renault’s strategic transition
    Olivier Kueny

    senior loan officer, European Investment Bank

    What is a gigafactory?

    €10

    billion

    EIB investment in France in 2022

    Gigafactories are colossal manufacturing hubs, where companies usually produce electric vehicle batteries, renewable energy storage solutions, and related technologies. They specialise in producing one popular product on a large scale, unlike regular factories which are smaller and may cater to a variety of manufacturing needs. In Douai, AESC’s gigafactory will focus on the mass production of lithium-ion batteries for electric vehicles.

    Lithium-ion batteries are preferred over sodium, magnesium, or hydrogen batteries for electric cars due to their high energy-density and longer lifespan, which is crucial for cars because of the limited space on board. Since lithium is the lightest metal, less energy is required to move the car, enabling higher efficiency and greater travel distance.

    General enquiries and comments

    The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
    Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
    Alternatively, the EIB can be contacted through its external offices.
    Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

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    Media-related enquiries can be addressed to the EIB Press Office. Please also visit our Media information section.

    Complaints mechanism

    Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

    Zero tolerance against fraud and corruption

    The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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