Reports: French state investment fund withdraws investment in Renault EV battery plant; loan not to be granted

The French Strategic Investment Fund (ISF) will not invest €125 million (US$178 million) in Renault’s EV battery plant in Flins, French media reports. In addition, a €100 million public loan will no longer be granted.

France owns 15% of Renault, which is investing €4 billion with alliance partner Nissan Motor Co. Ltd. in its electric-vehicle program.

The manufacture of Li-ion batteries and the EV Zoe at Flins was the topic of a meeting between French Minister of Industry, Eric Besson, and the Renault CEO Carlos Ghosn last week, according to the reports.

The battery project is some one and half years behind the original schedule; funding will now fall entirely to Renault. The newspaper Liberation charged that the delay is due to Renault’s dissatisfaction with the battery technology being provided by Nissan, especially related to the cost.

Source: La Tribune