China's Invision Group to Supply Batteries to France's Renault... New Factory in Dwey

[Photo by Reuters-Yonhap News]

[Asia Economy Reporter Park Byung-hee] Chinese eco-friendly energy company Invision Group plans to invest up to 2 billion euros (approximately 2.6969 trillion KRW) to build a battery factory in Douai, northern France, Bloomberg reported on the 27th (local time).

Invision Group intends to produce batteries at the Douai factory to supply Renault automobiles. French President Emmanuel Macron is scheduled to officially announce the electric vehicle project between Renault and Invision Group on the 28th (local time). The French government is the largest shareholder of Renault, holding a 15.01% stake. This is 0.01% more than Nissan Motor (15%), Renault's strategic alliance partner from Japan.

Renault also announced plans to secure more than a 20% stake in the French startup Becker, which was established only a year ago. Becker will produce 16GW of batteries at its French battery factory starting in 2023, supplying 10GW of that to Renault. By 2030, production is expected to expand to 50GW, with 20GW supplied to Renault. Bloomberg predicted that as Renault secures shares in Becker, it could gradually reduce the volume of battery supplies it receives from LG Energy Solution.

Renault stated that through Becker, it plans to produce high-performance battery packs for large and premium models.

As the European electric vehicle market rapidly expands recently, automakers are putting significant effort into securing battery supplies like Renault. Porsche and Volvo announced battery production plans last week, and Volkswagen announced in March that it would invest billions of euros in six factories across Europe. Stellantis is also expected to reveal its electric vehicle investment strategy on the 8th of next month.

Renault, which recorded its largest-ever loss last year, is aiming for a revival through electric vehicles. Luca de Meo, Renault's CEO, announced plans to have the capacity to produce 1 million electric vehicles in Europe by 2030. He stated that by 2030, 90% of cars sold under the Renault brand will be electric vehicles.

Luca de Meo, CEO of Renault
Photo by AFP Yonhap News

Renault's choice of Invision Group as a partner appears to also consider its relationship with Nissan. In 2018, Nissan transferred management rights of its battery subsidiary AESC to Invision Group but still holds a 20% stake in AESC.

Invision AESC plans to produce 9GW of batteries starting in 2024 and increase production capacity to 24GW by 2030.

Considering that Invision has applied to the French government for a scale of 43GW, it seems they are also considering contracts with automakers other than Renault. Ray Zhang, CEO of Invision Group, stated that they can achieve 43GW by signing additional contracts with other automakers.

CEO Zhang said the future growth prospects of the battery market are bright, and although current battery production capacity is minimal, they plan to increase investment going forward. He mentioned that France is strategically important and that production in the UK is also possible in the future.

The Douai factory is Invision's first battery factory in Europe. Invision also plans to manufacture wind turbines at the Douai factory. Invision Group announced it will create 2,500 jobs at the Douai factory by 2030.

Jobs are one of the important pledges for President Macron, who is seeking re-election. President Macron stated that by turning regions with declining industries into electric vehicle hubs, 4,500 jobs could be created by 2030. According to French officials, the French government may provide about 200 million euros in support for the Renault and Invision electric vehicle project.

This content was produced with the assistance of AI translation services.