The measure will contribute to the EU's strategic objectives relating to job creation, regional development, and to the green transition of the regional economy.

The French measure

France notified the Commission of its plans to support Envision AESC France in the establishment of the first phase of a new factory in Douai, Hauts-de-France. The plant will produce Lithium-ion batteries for electric vehicles with an annual capacity of 9 GWh in this first phase.

The aid, which will take the form of a direct grant, will amount to €48 million. The project will create approximately 1,000 direct jobs, as well as further indirect jobs.

The new factory, which is designed to be carbon neutral, will be located in the Hauts-de-France, an area eligible for regional aid under Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU').

The Commission's assessment

The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) of the TFEU, which allows Member States to promote the economic development of the most disadvantaged areas of the EU, and the 2022 Regional Aid Guidelines (‘RAG').

The Commission found that:

The measure will contribute to job creation, economic development and the competitiveness of a disadvantaged area. In particular, the measure will have a positive impact on employment by creating 1,000 direct jobs in Douai, as well as other indirect jobs in the region.
The aid has an incentive effect, as the beneficiary would not carry out the project without the public support.
The measure has a limited impact on competition and trade within the EU. In particular, the aid is necessary and appropriate to set up the new factory of Envision AESC France, while contributing to the regional development.
The aid is proportionate since it is limited to the minimum necessary to trigger the investment and will not exceed the maximum aid amount allowed by the French regional aid map.