A letter of intent was signed today in Flins between the Renault-Nissan Alliance, the French Atomic Energy Commission (CEA) and the French Strategic Investment Fund (FSI) to set-up a joint venture company that would develop and manufacture batteries for electric vehicles, under the patronage of Christian Estrosi, the French Minister for Industry.
Renault, Nissan and the CEA would bring technical expertise and infrastructure support in addition to an equity investment. Consistent with its mission making long-term investments in companies in order to boost French competitiveness, the FSI will contribute 125 million euros to the project. In order to complete the financing of the project, the European Investment Bank (EIB) is considering a loan of up to 50% of the 280 million Euro debt financing.
The joint venture plans to produce batteries from mid 2012 at the Renault Flins pl
ant, located 30km
from Paris. Production capacity is targeted at 100,000 batteries a year. The investment value of the first
phase of the project is estimated at 600 millions Euros.
To date, the French government has created several initiatives towards zero emission mobility including
public and private sector company bids on joint purchases of a 100 000 electric vehicles fleet by 2015,
consumer incentives of up to €5,000 for the purchase of an electric vehicle (through 2012) and the development of infrastructure through a planned investment of 900 millions Euros financed by the French government.
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- Renault and France in Joint Project for Electric Car Batteries (online.wsj.com)