After meeting with French President Emmanuel Macron, Elon Musk hinted at substantial future investments in France. This promising development is a part of Macron’s long-term strategy to rebrand France as a global hub for business and industry, particularly in the automotive sector.
Musk, despite having partied in Los Angeles and Cabo, Mexico, just hours before his arrival, was welcomed with open arms. The billionaire’s visit included a meeting with French finance minister Bruno Le Maire and dinner at the “Choose France” summit in the Palace of Versailles, attended by 200 other business executives.
Macron’s campaign to attract executives and transform France’s image among investors appears to be yielding results, especially in the automotive sector. France has recently secured a series of deals that position it as a major player in Europe’s electric vehicle manufacturing industry.
The string of successes includes Taiwanese car battery maker ProLogium’s announcement of plans for a €5.2bn (£4.5bn) plant at the port of Dunkirk, reviving France’s northern “rust belt”. French company Verkor also plans to build a €1.6bn battery factory in the same area. Franco-German ACC, backed by Mercedes Benz, Stellantis, and Total, has begun construction of a similar “gigafactory” near Lens, with another being built by China’s Envision.
Musk’s visit and subsequent hints at investments have further boosted Macron’s efforts. The French president enthusiastically shared his meeting with Musk on Twitter, stating they had “so much to do together”.
However, the UK’s own efforts to secure a foothold in the emerging electric car industry are faltering. Despite similar efforts to convince Musk to open a gigafactory in England, the Tesla chief executive had no official engagements in Britain during his European visit.
Experts warn that the UK is running out of time to safeguard the future of its domestic car industry. The Faraday Institution estimates that the UK will need around five large gigafactories to meet domestic demand by 2030. Currently, only one – Envision’s plant next to the Nissan factory in Sunderland – is under construction.
Macron’s success in transforming France into a major player in the electric vehicle industry underscores the challenges facing the UK. As the race for electric vehicle dominance heats up, the UK’s cautious approach may prove costly in the long run.
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