The European Commission has given green light to a €48m ($49.67m) French state aid measure, under EU State aid rules, to support the development of Envision AESC France’s proposed lithium-ion battery factory for electric vehicles (EVs) in Douai, France.

This move aligns with the EU's strategic goals of job creation, regional development, and fostering the green transition of the regional economy.

France has communicated to the Commission of its plans to assist Envision AESC France in setting up the initial phase of a new factory in Douai.

The facility will be equipped to produce lithium-ion batteries for EVs.

 It is expected to have annual production capacity of 9 GWh in the first phase.

The French aid, provided as a direct grant, aims to generate around 1,000 direct jobs and additional indirect employment opportunities.

Designed to operate with carbon neutrality, the new factory will be situated in Hauts-de-France, a region eligible for regional aid under Article 107(3)(c) of the Treaty on the Functioning of the EU (TFEU).

The Commission's assessment concluded that the measure would contribute significantly to job creation and the economic upliftment of a disadvantaged area.

The aid is stated to have an incentive effect, as the beneficiary would not be able to undertake the project without public support.

The Commission further stated that the assistance provided is proportional as it is restricted to the minimum amount required to stimulate the investment, and will not surpass the maximum allowable aid amount outlined in the French regional aid map,

AESC chief communications officer Raj Shah was quoted by Reuters as saying: “We are grateful for this decision and look forward to starting production in Douai later this year.”

Last year, AESC started construction of a new, full scale battery plant in Navalmoral de la Mata in Spain’s Caceres province.