Posted By Global Banking and Finance Review
Posted on December 9, 2024
(Reuters) - French nuclear group Orano announced on Monday the creation of two joint ventures with Chinese group XTC New Energy Materials for the production of EV battery components in Dunkirk, France.
The plan calls for the creation of a Cathode Active Materials (CAM) manufacturing plant and a Precursor Cathode Active Material (PCAM) production plant, under the project name Neomat, with a public inquiry expected in the spring of 2025.
WHY IT'S IMPORTANT
Cathode materials, comprised of cobalt, nickel and manganese, are the main components of lithium batteries, used in electric vehicle (EV) and hybrid vehicle batteries.
CONTEXT
This follows an announcement in May 2023 by French President Emmanuel Macron about a joint venture by the two groups in Dunkirk with an expected investment of 1.5 billion euros, adding that the venture would create 1,700 jobs.
European automakers are struggling with weak demand, high production costs, and managing the shift to EVs, while trying to fend off competition from China.
KEY QUOTES
"We are hereby confirming our desire to pool our expertise and know-how together to help to develop a competitive industrial value chain in battery materials in Dunkirk in the Hauts de France region to serve the European electric vehicle industry over the long term," said Philippe Hatron, Director of Orano's Batteries programme and member of the Boards of Directors of the two joint ventures.
(Reporting by Dimitri Rhodes; Editing by Mark Potter)
