France Pours €1.5 Billion to Lure Taiwanese Firm for Solid-State Battery Plant, Accelerating Decoupling from Chinese Supply Chains

The French government recently approved approximately €1.5 billion in subsidies for Taiwan-based ProLogium Technology to support the construction of Europe’s first solid-state battery factory in Dunkirk. The plant is expected to begin operations by the end of 2028 and create 3,000 jobs. This move marks France’s shift away from its previous strategy of supporting domestic battery firms toward aggressively attracting foreign investment, as it confronts Europe’s heavy reliance on China for power batteries—China accounts for over 80% of the global battery market, compared to just 7% for Europe. The recent bankruptcies of Sweden’s Northvolt and Britain’s Britishvolt have further highlighted the difficulties Europe faces in achieving self-reliance in this sector. ProLogium ultimately chose France over other potential sites in the U.S. and Europe, citing the Macron administration’s strong commitment and generous policy incentives. France is now developing a “Battery Valley” in its northern region and pushing the EU to adopt an “Industrial Accelerator Act,” which would include “Made in EU” provisions and technology transfer requirements, aiming to rebuild its local supply chain and reduce dependence on China.