France

Major Developments in 2023

Over the year, new electrified light vehicles accounted for almost 23% of the market. Among the 1,594,841 light electric and plug-in hybrid vehicles on the road in France, 468,219 were registered in 2023. The market share of fully electric vehicles is close to 20%. However, according to the European Association of Electric Mobility (AVERE) France, it is wise to consider the effect of the evolution of the ecological bonus starting from 2024. This short-term acceleration will have a further impact on registrations at the beginning of the year. Nevertheless, this will not disrupt the sustained growth observed since 2020, which has seen the number of fully electric vehicles registered in France exceed one million by December 2023. On December 31, 2023, France counted 118,009 public charging points, representing an increase of 44% in one year and an average of 175 charging points per 100,000 inhabitants. This survey was produced by Avere-France and the French Ministry of Energy Transition, based on Gireve data.

In terms of charging capability, a total of 4,309 255 kW was available at the end of 2023, marking a significant increase compared with the 2,212 391 kW recorded one year before.

According to AVERE France, the country has doubled the total installed power of its national network in the space of one year, reflecting the development of fast and ultra-fast charging in the country. This emphasis on installed power was also highlighted in the targets set by the European Alternative Fuels Infrastructure Regulations (AFIR): by 2023, France has reached 241% of this obligation. It should be noted that the availability ratio of the charging points has dropped steadily this year, ending up at 80% in December. This downward trend is in line with an annual average of 83,3% for 2023.

Evolution of the EV grants

The ecological bonus is a subsidy for the purchase or long-term leasing of low-polluting vehicles. The government aims to accelerate the transition to electromobility. The bonus is therefore designed to facilitate the renewal of the car fleet with clean vehicles, namely electric ones. The subsidy may reach up to €5,000 for the acquisition of a car, and €6 000 for a van. These amounts are increased by €2,000 for households whose reference tax income per unit is less than or equal to €14,089, giving a maximum aid of €7,000 for the purchase of a car, and €8,000 for a van. Starting from January 2023, the bonus has been reserved for:

• electric passenger cars costing less than €47,000 and weighing less than 2,4 tons

• electric vans

• two- or three-wheelers and quadricycles with electric motors

Since December 2023, vehicles are also required to meet a minimum environmental score, defined by a national regulation. This score considers the entire environmental impact of an electric vehicle, including its battery, from its manufacture to its on-road use. This initiative is intended to stimulate the adoption of more environmentally friendly vehicles and promote sustainable mobility in France. To determine whether a vehicle meets the minimum environmental score required to qualify for the ecological bonus, automakers had to submit their applications through a digital platform managed by the French Agency for Ecological Transition, (ADEME). This platform was then used to conduct an in-depth evaluation of the applications. A list of eligible vehicles was published on December 15th, 2023. Each vehicle's environmental score was determined by assessing the impacts of each stage before its use on the road:

• production: materials used, such as steel, ferrous metals, aluminium, etc…

• assembly: environmental impact of the assembly plant, associated energy consumption

• battery: type, technology

• transport/logistics: environmental impact of vehicle shipment

Moreover, the €1,000 bonus for the purchase of a used electric car has been suspended and it applies now exclusively to the purchase of a new electric vehicle. To be eligible, the vehicle purchased must not already have been registered in France or abroad.

High-power charging stations

On July 24, 2023, the 12 winners of the second wave of the "Support for the deployment of charging stations for light and heavy-duty electric vehicles" call for projects were announced.This call for projects, operated by the French Agency for Ecological Transition (ADEME), is in line with the France 2030 program's objective of producing two million zero-emission vehicles in France by the end of the decade. A total of €3.6 billion has been allocated to support the large-scale deployment of low-carbon, competitive transport solutions.

Following the selection in January 2023 of seven initial winners, who will receive a total of €38 million in funding, the second edition of the call for projects has resulted in the designation of 12 new winners who will receive €68 million in funding, for a total investment of €200 million. Over 500 high-power charging stations will be financed between now and 2026, providing 2,500 charging points for electric vehicles throughout France. With a power of 150 kW per charging point, these infrastructures will enable a vehicle to be recharged in less than 30 minutes. The provision of these high-power infrastructures, which complement the deployment of the slow-charging network, will support the transition to low-greenhouse-gas-emitting vehicles in all the country's localities. The call for projects was open to local authorities, mobility organising authorities and energy distribution organising authorities. During the second wave, grant rates for stations outside metropolitan areas and in low-emission mobility zones have been increased. Moreover, for projects in non-interconnected zones (Corsica, Overseas France) and those for heavy trucks on the move, the minimum expenditure threshold has been lowered to increase eligibility.

France's first batteries' gigafactory

Inaugurated in France on Tuesday, May 30, 2023, in Pas-de-Calais, the plant of Automotive Cells Company (ACC), a joint venture of Stellantis, TotalEnergies and Mercedes-Benz, is the first lithium-ion battery gigafactory for electric vehicles in France. It is part of France's reindustrialisation plan, one of the priorities of the government's economic policy, and, on a broader scale, part of the strategy to build a major industrial policy for the European continent. Demand for batteries is growing fast and is set to increase 14-fold by 2030, driven by the electrification of transport. Given the strategic nature of the battery sector and its economic weight, the emergence of a French and European industrial offer is a priority project for the government. The environmental, economic, and industrial benefits of such a competitive national offering are threefold:

• an environmental challenge, to reduce transport CO2 emissions, in line with European regulations and the climate neutrality target by 2050, set by the 2015 Paris Agreements and addressed by the "Stratégie Nationale Bas Carbone"

• an economic challenge for the automotive industry, since the battery represents around 35% of the added value of an electric vehicle

• lastly, a challenge for industrial sovereignty Ensuring the supply of this gigafactory is now a priority to guarantee France's strategic autonomy and to achieve climate neutrality.

To continue to build up a full national offer, objectives are now focused on the emergence of projects covering the entire battery value chain: • extraction, refining, processing of critical raw materials, manufacture of battery materials and components, innovative production machinery and processes • collection, reuse, reconditioning, recycling, and reincorporation of materials. It is also important to strengthen the French industry's ability to position itself for the next generation of batteries (all-solid, and new alternative chemistries to lithiumion)These projects are helping to develop new generations of batteries that are more efficient, safer, cheaper, and longer lasting than those currently on the market and put the European Union on a par with China and the United States in terms of annual investment in this value chain.

A national research program for the development of new battery generations

Led by the centre for atomic energy(CEA) and the centre for national scientific research (CNRS) on behalf of the French government, the priority research program and equipment (PEPR) "Supporting innovation to develop future generations of batteries" was launched on January 10, 2023. It aims to support the industry with transferable skills and findings in the short-to-medium term and to prepare for the long term. Financed as part of the "France 2030" investment program, this PEPR is part of the national battery strategy, which aims to help develop battery supply and demand, particularly to accelerate the energy transition in the transport sector. The priorities of the national battery strategy are the development of current and future batteries, the supply and development of the materials required for their manufacture, and the management of their end-of-life through reconditioning or recycling. While the electrification of the automotive industry is the primary targeted application, the development of batteries for other markets such as aeronautics, space, stationary applications, and the Internet of Things is also concerned.

In this context, a significant research effort is devoted to the development of new generations of batteries with the PEPR "Supporting innovation to develop future generations of batteries", co-directed by CNRS and CEA. Its activities focus on three areas: innovative chemistries (all-solid technology, post-Li-ion chemistry),innovative battery management systems adapted to these new chemistries, and the development of new characterisation and simulation tools to conduct this research.

With a budget of €45,66 million allocated by France 2030 over seven years, this PEPR program has been funding five major high-stakes projects since the beginning of January, led by research teams recognised in the battery community. It is also funding the winners of a call for projects launched in November 2022 and operated by the French Research Agency (ANR), for a total of €15 million. These latter projects complement research activities already underway. They were launched in the summer of 2023.

Outlook

France will continue to support transport electrification through a suite of incentives targeting different transport modes.