# Factbox-Companies invest in EV battery factories in Europe Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-31 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Europe's Electric Vehicle Battery Factory Investments Meta Description: Discover how companies in Europe are pouring billions into EV battery factories to reduce dependency on Asia and win the green subsidy race. URL: https://financedigest.com/factbox-companies-invest-in-ev-battery-factories-in-europehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-31t071945z2lynxmpej4u07brtroptp4northvolt-batteries-1736813950413-compressed.jpg) # Factbox-Companies invest in EV battery factories in Europe (Reuters) – Europe is seeking to lure electric vehicle (EV) battery makers to build factories in the region as the bloc – home to carmakers such as Volkswagen and Stellantis – tries to cut its dependency on Asia and win a green subsidy race with the United States. They also want to attract suppliers of components and ingredients for making electric vehicles and their batteries. Below are recent investments announced by companies: ## GERMANY Sweden’s Northvolt said on May 13 it will invest 3-5 [billion euros](https://www.financedigest.com/mexicos-femsa-launches-second-3-billion-euro-sale-of-heineken-shares.html "Mexico’s FEMSA launches second 3 billion euro sale of Heineken shares") ($3.3-5.5 billion) in an EV battery plant in Heide in the northern state of Schleswig-Holstein as long as subsidies are approved. One source close to the matter estimated the subsidies at more than 600 [million euros](https://www.financedigest.com/spains-king-felipe-reveals-2-6-million-euros-in-wealth-in-bid-to-make-royal-house-more-transparent.html "Spain’s King Felipe reveals 2.6 million euros in wealth in bid to make Royal House more transparent"). [Volkswagen plans](https://www.financedigest.com/volkswagen-investors-question-plan-for-ceo-to-lead-porsche-listing.html "Volkswagen investors question plan for CEO to lead Porsche listing") to build six battery factories in Europe totalling 240 gigawatt (GWh) of capacity by 2030. Production at its first battery plant, “SalzGiga”, in Salzgitter in the Lower Saxony region will start in 2025. China’s CATL, which has been expanding rapidly outside China, is ramping up production at its [plant near](https://www.financedigest.com/ferrari-enel-x-plan-solar-plant-near-fiorano-test-track.html "Ferrari, Enel X plan solar plant near Fiorano test track") Erfurt in the central state of Thuringia. [Germany’s BASF is building a battery](https://www.financedigest.com/tesla-tops-battery-electric-vehicle-registrations-in-germany-beating-volkswagen.html "Tesla tops battery-electric vehicle registrations in Germany, beating Volkswagen") materials site in the eastern city of Schwarzheide in Brandenburg. U.S. Microvast built a factory in Ludwigsfelde, south of Berlin. Automotive Cells Company (ACC) – a [joint venture](https://www.financedigest.com/bp-solar-joint-venture-expanding-in-australia-with-two-new-projects.html "BP solar joint venture expanding in Australia with two new projects") of Stellantis, Mercedes Benz and TotalEnergies – plans to spend over 7 billion euros on three gigafactories in Europe, with a capacity of 40 GWh each by 2030. One will be located in Kaiserslautern in the western state of Rhineland-Palatinate. Gigafactory is a term popularised by Tesla [CEO Elon Musk](https://www.financedigest.com/elon-musk-who-runs-four-other-companies-will-now-be-twitter-ceo.html "Elon Musk, who runs four other companies, will now be Twitter CEO") and refers to plants producing batteries on a large scale. ## FRANCE Joint venture ACC has built a gigafactory in Billy-Berclau Douvrin, France, as part of its [plan for three gigafactories in Europe](https://www.financedigest.com/analysis-energy-market-turmoil-shakes-europes-green-power-plan.html "Analysis: Energy market turmoil shakes Europe’s green power plan"). ACC has inaugurated the gigafactory on May 30, with operations starting in the second [half of the year](https://www.financedigest.com/tods-sales-rise-17-in-first-half-of-year.html "Tod’s sales rise 17% in first half of year"). Taiwan’s ProLogium announced on May 13 plans for a 5.2-billion-euro plant in Dunkirk – its first such overseas investment – after France offered [deal sweeteners and competitive power](https://www.financedigest.com/uk-power-networks-awards-five-year-deal-to-cordant-services.html "UK Power Networks Awards Five-Year Deal to Cordant Services") prices, executives from the company said. Envision is [investing up to 2 billion euros](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet") in its AESC gigafactory in Douai close to the electric car hub known as “Renault ElectriCity. The plant will have a capacity of 9 GWh in 2024, with the aim of reaching 24 GWh by 2030. “Renault ElectriCity” pools three of the group’s plants in northern France, Douai, Ruitz and Maubeuge. French [start-up Verkor plans to build](https://www.financedigest.com/building-a-fast-growing-start-up-as-a-female-founder.html "Building a Fast-Growing Start-Up as a Female Founder  ") a gigafactory in Dunkirk, for a targeted capacity of 12 GWh, enough to power more than 100,000 vehicles. Renault would be its biggest supplier. Blue Solutions’s gigafactory operates in Ergué-Gabéric, [near Quimper since](https://www.financedigest.com/dollar-steadies-near-16-week-low-yuan-set-for-biggest-weekly-gain-since-2005.html "Dollar steadies near 16-week low, yuan set for biggest weekly gain since 2005") 2013\. According to its [Managing Director](https://www.financedigest.com/legal-general-insurance-appoints-nick-frankland-as-the-managing-director-for-its-new-fintech-business.html "Legal & General Insurance appoints Nick Frankland as the Managing Director for its new Fintech business     "), Jean-Luc Monfort, in 2021, the company envisaged that both lines in Quimper and a line in Montreal would have a annual capacity of 1.5 GWh. ## SPAIN Spain, [Europe’s largest](https://www.financedigest.com/portugal-set-to-start-up-europes-largest-floating-solar-park.html "Portugal set to start up Europe’s largest floating solar park") carmaker after Germany, signed a deal in July 2022 with China’s Envision to build an EV battery plant worth 2.5 billion euros in Navalmoral de la Mata in the central-western region of Extremadura, with planned annual capacity of 30 GWh. Volkswagen and its [partners said last year](https://www.financedigest.com/synechron-partners-with-r3-in-one-of-the-largest-distributed-ledger-consortium-projects-of-the-year.html "Synechron Partners with R3 in One of the Largest Distributed Ledger Consortium Projects of the Year") they would invest 10 billion euros to build a 40 GWh battery plant in Sagunto near Valencia, with production to start by 2026, and produce electric vehicles at its two car factories in Spain. BASQUEVOLT plans to [invest more than 700 million euros to build a plant in the Basque Country](https://www.financedigest.com/town-vs-country-the-investment-dilemma.html "Town vs country – the investment dilemma "). Slovakian battery manufacturer InoBat said last October it had signed a declaration of intent with the Spanish [government to set](https://www.financedigest.com/factbox-uk-government-sets-out-priorities-in-queens-speech.html "Factbox-UK government sets out priorities in Queen’s speech") up an EV battery factory in central Spain’s city Valladolid, expected to cost 3 billion euros. China’s BYD Co, the world’s biggest seller of EV and [plug-in hybrids](https://www.financedigest.com/mg-motor-launches-plug-in-hybrid-option-in-mexico-as-ev-race-heats-up.html "MG Motor launches plug-in hybrid option in Mexico as EV race heats up"), could request funds from a revamped government scheme called PERTE aimed at encouraging EV production in the country, Spanish newspaper Expansion said in April. Volkswagen and [Renault also plan to request funds](https://www.financedigest.com/nissan-pushes-partner-renault-to-sell-down-stake-may-raise-funds-source.html "Nissan pushes partner Renault to sell down stake, may raise funds -source") from the PERTE scheme. Stellantis and newcomer AEHRA may do the same. India’s Tata Group said in February it was looking at Spain or Britain as possible battery factory locations. ## ITALY [Joint venture ACC plans to spend over 2 billion euros to develop a 40 GWh gigafactory in the southern city](https://www.financedigest.com/westminster-city-council-and-4c-launch-joint-venture-to-help-public-sector-organisations-address-financial-squeeze.html "Westminster City Council and 4C launch joint venture to help public sector organisations address financial squeeze") of Termoli, with an investment of 2 billion euros. Operations are expected to start in 2026. ## POLAND LG Chem EV battery in Wroclaw started [production in the second half](https://www.financedigest.com/six-in-10-business-believe-automation-will-drive-productivity-reveals-robert-half.html "Six in 10 business believe automation will drive productivity, reveals Robert Half") of 2017, with a capacity of 100,000 batteries per year. The [European Commission approved in March 2022 Poland’s](https://www.financedigest.com/russia-halts-gas-to-poland-bulgaria-taking-aim-at-european-economies.html "Russia halts gas to Poland, Bulgaria, taking aim at European economies") measures of 95 million euros to support the expansion of the plant, which aims to reach capacity of 115 GWh in 2025. ## HUNGARY Samsung’s 1.2-billion-euro Goed factory, with an annual capacity of 30 GWh, has been in operation since 2018. ## SWEDEN Northvolt’s Skelleftea factory has been operating since 2021. It [aims to achieve an annual](https://www.financedigest.com/allianz-aims-for-5-7-annual-eps-growth-for-2022-24.html "Allianz aims for 5-7% annual EPS growth for 2022-24") capacity of 40 GWh by 2025. ($1 = 0.9084 euros) (Compiled by Alessandro Parodi, Tiago Brandao and Matteo Allievi; editing by Barbara Lewis and Milla Nissi) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---