Renault plans strategic Gigafactory deal in Douai to revert profits

The partnership will create nearly 4500 jobs by 2030 in France

Renault plans strategic gigafactory deal in Douai to revert profits

Renault plans strategic gigafactory deal in Douai to revert profits

The Chinese wind energy producer Envision Group intends to invest $2.4 billion in northern France in a battery plant to power the range of Renault SA electric vehicles.

The company accelerates in becoming the world’s best net-zero technology partner for its clients from various sectors. Furthermore, it commits to building a global smart energy ecosystem that leads to a sustainable energy future.

On Monday, French President Emmanuel Macron would disclose the details of the contracts between the two companies at Renault’s assembly plant in Douai. The French government fund for the EV projects is nearly 200 million Euros. The new projects of the EV plant are estimated to bring a pool of almost 4,500 job opportunities by 2030. Envision operates in 9 global technology innovation centers in Denmark, the US, Germany, Singapore, and other countries. Envision reached $8 billion in sales last year further expects high growth in batteries.

The other carmakers competing in electric vehicles are Porsche, which announced that at least 80% of its global sales by 2030 would be from electric vehicles and pledged to be CO2-neutral in two years. Also, with an ambitious goal to reach carbon-neutral by 2050, Nissan plans to invest $1.8 billion in EV to sell 1 million hybrid or electric vehicles annually.

The economic benefits through electric vehicles include reduced fuel consumption, which, according to the long-term EV outlook, would be displacing a 6.4 MMbpd of oil demand, and fuel efficiency will decrease an additional 7.5 MMbpd by 2040. The job opportunities consequently have a brighter future with the electric vehicle sector booming. In addition, the industry creates transport investment that reduces carbon emissions, which brings green, sustainable recovery.

Renault plans to bolster 1 million electric vehicles by 2030 as the carmaker saw extreme losses last year. Renault’s revenue in 2020 was 43.47 billion Euros, less than 10 billion in the year before. Additionally, Renault inked a deal with STMicroelectronics to have a steady flow of power semiconductors for full-electric and hybrid vehicles.

The Renault 5 model will comprise Envision’s nine gigawatt-hours of batteries in 2024 and 24 gigawatt-hours by 2030. Additionally, Chief Executive Officer Lei Zhang said the company aims to get permission for a capacity of 43 gigawatt-hours if it establishes concrete deals with other automotive companies. However, he added, “France is strategic for Envision.”

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