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Renault Will Soon Announce Three Battery Deals to Ensure Supply

The newest rumor about Renault’s electric car plans shows how the company is moving fast toward electric mobility and its dependence on French politics. According to Bloomberg, the French carmaker will announce next Monday, June 28, a deal with Envision AESC for a battery plant in Douai, France. Better said, the agreement would be announced by the French president, Emmanuel Macron.
Renault ElectriCity 13 photos
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Not by chance, Douai is included in Renault’s ElectriCity plans, which put three factories in the north of the country under the same administration to help the company transition to electric vehicles. With that, Douai, Maubeuge, and Ruitz will be dedicated to EVs, and now we know who will supply them with batteries.

Apart from Envision AESC, Renault would also be discussing cell supply with a French battery startup called Verkor and with ACC, a joint venture between Stellantis and TotalEnergies. Although it may seem weird for Renault to buy cells from a competitor, the French government is involved with TotalEnergies, which explains the discussions with ACC. Concerning Verkor, Renault may buy a stake in the startup, according to Bloomberg.

The deal with Envision AESC would help Renault have a 43 GWh cell factory very close to its primary electric car plants. The contract would ensure more than half of that production will be for the French carmaker. Depending on demand, it may need way more than that for its cars, hence the discussions with other suppliers.

Renault plans to produce more than 400,000 electric vehicles per year there. Considering the Megane E-Tech Electric will have a 60 kWh battery pack, the French company would need 24 GWh in cells to produce 400,000 of them annually. The Nissan Ariya – built over the same CMF-EV platform, will also offer a 90 kWh battery pack, which implies the Megane E-Tech will also have one. In other words, 24 GWh is the lowest demand scenario.

The Envision AESC plant in Douai could cost as much as $2.9 billion, according to James Frith, an analyst at BloombergNEF.

 
 
 
 
 

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