Renault stock turns red: Chinese partner invests billions in battery factory | 06/28/21

Chinese group Envision wants to invest up to 2 billion euros in a battery plant in northern France and supply it to car manufacturer Renault.

By the end of the decade, 2,500 jobs will be created, Renault announced in Boulogne-Billancourt near Paris. Head of state Emmanuel Macron personally announced the investment in a car-making plant in Douai, northern France, on Monday in order to give it special weight.

Renault says it has partnered with Envision AESC. The automaker wants to become more competitive in electronic cars. Envision AESC is already a partner of the Japanese manufacturer Nissan, with which Renault is allied.

Renault General Manager Luca de Meo does not rely on mass when converting a manufacturer and instead wants to generate revenue. He sees great opportunities in electronic cars in particular. Renault lost $1 billion last year.

Rival with Opel, Peugeot or Fiat brands, Stellantis has already announced battery production in Dufferin, northern France. Production is also planned in Kaiserslautern.

As part of the promotion of the French website “Choose France” (for example: “Choose France”), including the Envision plant, more than 20 new projects of 3.5 billion euros have been raised this year. That means 7,000 jobs, according to a paper published by the Ministry of Economy and Finance in Paris. Among the investors are companies from Germany such as the online fashion retailer Zalando. Macron wanted to gather about 150 corporate chiefs in Versailles to end the evening.

For Renault stock on Monday in Paris, it last fell 1.60 per cent to €34,695 – previously it was still able to turn a profit at times.

/ cb / DP / jha

BOULOGNE-BILLANCOURT (dpa-AFX)