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France is attracting electric vehicle-related companies and cluster initiatives are progressing in the north of the country

In France, the government is focusing on attracting investment related to electric vehicles. Behind this is the US IRA (Inflation-Reduction Act) tax credit. In the EU, the government has taken steps such as easing tax incentives and subsidy requirements with the aim of retaining investment within the region and attracting new investment, and competition is intensifying amongst EU states. Competition between countries in the EU is intensifying.

In this context, France beat Germany and the Netherlands in the bid for Taiwanese all-solid-state battery manufacturer ProLogium’s plant in May 2023 to build a gigafactory in Dunkirk, where ProLogium will invest EUR 5.2 billion with the plant scheduled to go on stream in 2026. ProLogium will invest EUR 5.2 billion in the plant, which will be operational in 2026. It will be the company’s first plant outside the country and the fourth battery plant in France. Dunkirk is often associated with the famous World War II location of the film Dunkirk, but it is also the largest port city in France, with good geographical access to Germany and other countries, as well as a nuclear power station, which provides cheap, low-CO The city also benefits from cheap, low-CO2 electricity due to its nuclear power plant. In addition to ProLogium, the city has recently become a magnet for investment, with a joint venture between China’s XTC and France’s Orano in battery components planning to invest EUR 1.5 billion to open a plant there.

In addition, the French Government has revised its BEV purchase incentive scheme, with only models that meet low-carbon standards in the production process eligible for a EUR 5,000 payment. The idea is to support battery production in the country by boosting domestic BEV sales. However, the current situation seems to have a strong aspect of deterring the influx of BEVs from Chinese manufacturers, as MG, which is also selling well in France, is not eligible for the payment.

Around the same time, President Macron met with Mr Musk and elicited the assurance that ‘important investments will be made in France’, although there was no commitment on timing. In the past, the President has tried to attract Tesla, but it was eventually taken by Germany, and he is probably keen to do it this time. However, even at Tesla’s German plant, the planned production of battery cells will be transferred to the US. It seems that even if the company succeeds in attracting the right people and starts operations as planned, it cannot rest on its laurels.

This section summarises the electric vehicle industry in North America, Europe, China, India and other major Asian countries and Japan. It will include information on electric vehicle sales in key regions and countries, product plans by market, investment plans of automobile companies and capacity plans related to electric vehicles. The special feature also explains the Software Defined Vehicles strategy, which is essential for the future electric vehicle race.