The French government is to give €1.5bn to Taiwanese battery maker ProLogium to build a factory near Dunkirk.

The company announced its intention to base its first large-scale overseas production and R&D sites in France in May.

It said the value of the plant would be €5.2bn, that work would begin in 2024 and that it would be operational by 2026.

When complete, the factory will have an annual capacity of 48GWh.

Vincent Yang, founder and chief executive of ProLogium, said: “Our investment in the region is substantial, and its impact will be long-lasting. The gigafactory will not only create 3,000 jobs but also establish a comprehensive research and development ecosystem. This project promises significant economic benefits, strengthening both French and European economic sovereignty while driving the transition towards a greener industry.”

The European Commission approved the €1.5bn grant. EU rules allow state aid for research, development, and innovation.

ProLogium’s battery design replaces the separator and liquid electrolyte in most lithium-ion batteries with a ceramic separator and solid-state electrolyte.

It says this enables higher energy density, which means longer range for EV drivers.

The EU has been keen to reduce Europe’s dependence on Chinese battery production. Currently, Chinese companies make up 56% of the EV battery market, followed by Korea (26%) and Japan (10%).

One-third of the world’s EV batteries come from Chinese company CATL, which supplies them to Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo.