France: IPCEI projects and accompanying measures
France is taking part in the two IPCEIs on Batteries and is coordinating the first one, authorised in 2019 by the Commission and involving seven Member States[1] and 16 companies supported by these Member States representing the whole value chain[2]. The implementation of the two IPCEIs on Batteries is closely coordinated jointly by Germany and France, with the support of the Commission (DG GROW, DG RTD, JRC and DG COMP) to ensure consistency in project monitoring. Best practice is shared, particularly in terms of annual reporting and feedback from companies.
For example, France invited Germany and the EuBatIn IPCEI companies to an information session on annual reporting organised by DG GROW and DG RTD in May 2023, which gave the partners a better understanding of the Commission’s expectations in this area.
In addition, on 1 June 2023, France also accepted Germany’s invitation to deliver a speech from the French perspective and insights on these IPCEIs.
Finally, and with a view to actively disseminating knowledge and integrating start-ups into the European battery ecosystem that has emerged thanks to the two IPCEIs on Batteries, France organised a meeting between French start-ups and partners from the first IPCEI on Batteries in December 2022. 12 companies out of 5 Member States from the first IPCEI on Batteries were present.
This event was the opportunity to communicate on the IPCEI projects, while introducing these companies participating in the first IPCEI Batteries to the French startups that were present like Iten working on lithium-ceramic chemistry for microbatteries, Mecaware and Geolith working on recycling, TOLV on the retrofit of heavy duty vehicles and Olenergies which addresses battery integration in the electricity system. The IPCEI projects must notably generate “spillovers” throughout the Union, and this includes, for example, the opening of the pilot lines made possible by the IPCEI to start-ups and SMEs under certain conditions. Spillovers relate to the IPCEI’s ability to have a wider beneficial impact on the development of the EU battery industry as a whole, beyond individual projects. France wanted to shed light on this notion through this event. In the end, this meeting also enabled effective collaborations to be forged between these start-ups and European companies and gave them access to major groups in the sector.
France is funding a total of 4 companies in these two IPCEIs on Batteries: ACC and Solvay in the first IPCEI on Batteries, for which the Commission has granted a maximum amount of state aid of around €960 million. And Arkema and Tokai Carbon Savoie in the IPCEI EuBatIn.
[1] France, Belgium, Germany, Italy, Poland, Sweden and Finland.
[2] This includes, among many others: BASF, Keliber, Solvay and Terrafame on materials ; ACC, FAAM, BMW and VARTA on cells and modules ; Enel, Endurance, Flash Battery and SEEL on Battery Systems ; and Elemental, Fortum and Umicore on refining and recycling.
Focus ACC: a pioneering battery production project in Europe
On May 30th 2023, the first French Gigafactory of battery has been inaugurated by the Automotive Cell Company (ACC). The joint venture between Stellantis, Saft and Mercedes is developing advanced cells and modules for advanced (and eventually all-solid) lithium-ion batteries, and the construction of construction of three gigafactories in France, Germany and Italy. ACC has chosen to locate its research and development activities in Bruges, near Bordeaux, while its pilot plant - designed to test the production process prior to scale-up - is located in Nersac (Charente), close to a historic Saft plant.
The French gigafactory is located in Billy-Berclau Douvrin (Pas-de-Calais), on a site owned by Stellantis (Française de Mécanique), historically dedicated to the combustion engine production. Billy Berclau Douvrin Gigafactory will supply Stellantis and Mercedes from early 2024. It will reach an annual capacity of 40 GWh by 2030, the equivalent of around 500,000 electric vehicles. The plant will employ 2,000 people by 2030. It will be France's first gigafactory for lithium-ion batteries for electric vehicles.
As part of the first battery PIIEC, the European Commission has authorized France (State and local authorities) to grant ACC €846 million in aid for this project. The French aid supports research and development activities at Bruges and Nersac and the ramp-up of the gigafactory at Billy-Berclau Douvrin. In total, this project represents almost 3 billion euros of investment in France, including 2.5 billion euros for the gigafactory.
This project reveals a real trans-European dimension by its development across EU, in France, Germany and Italy. Among the shareholders - Ola Källenius for Mercedes, Patrick Pouyanné for Total, Carlos Tavares for Stellantis -, and the French ministers – the Minister of Economy and Finances Mr. Le Maire, the Minister of Energy Transition Mrs. Pannier-Runacher, and the Minister of Industry Mr. Lescure – Italian and German Ministers underlined this strong industrial cooperation between the three countries, and among Europe. The event was the occasion for Bruno Le Maire to remind the beginning of the IPCEI’s adventure, in close collaboration with Peter Altmaier in 2018, among others.