PSA and Total, will be built in Europe plants for the production of batteries for electric vehicles

Moscow, 31 Jan – “News.Economy.” French PSA Group (Peugeot produces cars, Citroen DS, Opel and Vauxhall) and battery manufacturer Saft, owned by oil company Total, will be built in Europe, factories for the production of batteries for electric vehicles.

the Project will require investments in the amount of 5 billion euros by 2030, “Battery is now fully produced in Asia, they will have 30-40% of the cost of cars in the future,” – said the President of France Emmanuel macron during a visit to the factory of Saft in the French commune of Nersac, according to “Interfax”.

Europe can “be, depending on Asian producers who can raise prices at will,” said macron.

In the first stage, PSA and Saft invest 200 million euros ($220 million) in the construction of the plant in Nersac the company to produce batteries Saft. The opening of the plant scheduled for mid-2021.

Then the company will make a decision on the construction of two plants in France and Germany. The total capacity of new enterprises will reach 48 GW, they are going to produce 1 million batteries per year, which is approximately 10-15% of the European market.

In December 2019, the European Commission (EC) has approved plans of seven European countries to contribute 3.2 billion euros to projects of common interest (Important Projects of Common European Interest, IPCEI) for the production of batteries for electric vehicles. The draft PSA and Saft can receive state assistance in the amount of 1.3 billion euros.

PSA and Saft will create in equal shares a joint venture Automotive Cell Company (ACC). After starting full-scale production, the share of Saft in SP will be reduced to 33%. Text: News.Economy