The European Commission has approved, under EU State aid rules, a €48 million French measure to support Envision AESC France in setting-up a new factory for the production of Lithium-ion batteries for electric vehicles in Douai. 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 .
On this basis, the Commission approved the French measure under EU State aid rules.
Background
The RAG set out the rules under which Member States can grant State aid to companies to support investments in new production facilities in the less advantaged regions of Europe, while ensuring a level playing field between Member States.
In order to comply with the RAG, an aid measure must respect a number of conditions:
- The aid must have a real "incentive effect", in other words, it must effectively encourage the beneficiary to invest in a specific region;
- the aid must not exceed the regional aid ceiling applicable to the region in question and must be kept to the minimum necessary to attract the investment to the disadvantaged region;
- the aid must not have undue negative effects, such as the creation of excess capacity in a declining market;
- the aid must not directly cause the relocation of existing or closed down activities from elsewhere in the EU to the aided establishment; and
- the aid must not divert investment away from another region in the EU, which is as or more economically disadvantaged than the region where the aided investment takes place.
On 21 January 2022 the Commission approved France's map for granting regional aid from 1 January 2022 to 31 December 2027, within the framework of the revised RAG. In May 2022 , November 2023 and September 2024 , the Commission approved amendments to France's regional aid map.
The non-confidential version of the decision will be made available under the case number SA.109228 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News .
