PARIS, June 2 (Xinhua Silk Road) -- China's battery materials producer XTC New Energy and French nuclear group Orano recently jointly broke ground on Neomat CAM plant, the first industrial site in France dedicated to manufacturing cathode active materials for electric vehicle batteries.
The groundbreaking ceremony took place at the Grand Port Maritime de Dunkerque area, in the municipalities of Gravelines and Loon-Plage, drawing nearly 500 participants from government, industry and corporate sectors across China and Europe. It marked the official start of construction work in mid-2026, following the final investment decision made earlier in 2026.
The Neomat CAM plant represents an investment of nearly 500 million euros (about 582 million U.S. dollars). With a planned manufacturing capacity of 40,000 metric tons per year, it will be capable of equipping 500,000 electric vehicles annually, with first production expected to begin in the fourth quarter of 2028.
The plant is expected to help guarantee long-term security of supply to European gigafactories, strengthen the continent's battery value chain and support the competitiveness of the automotive industry. It is also expected to create nearly 600 direct and indirect jobs, further consolidating the position of Hauts-de-France as a major hub for the European battery industry.
French Economy Minister Roland Lescure said in his speech that the project is an example of win-win cooperation between France, Europe and China. He said it reflects shared industrial ambitions and will create an additional strategic component of the electric car industry in Dunkirk, in the Hauts-de-France region, marking a vital step toward ending Europe's dependence on fossil fuels.
Aurore Bergé, Minister Delegate to the French Prime Minister, noted that the factory will produce not only battery materials and technology, but also jobs, social mobility and business activity. She paid tribute to Orano, XTC New Energy and all industrial, economic, local, national and European partners involved, saying that industrialists create jobs and behind every job is a life being changed.
Nicolas Maes, Senior Executive Vice President of Orano, said the groundbreaking ceremony marks the concrete industrial realisation of the ambition set out by XTC New Energy and Orano at the 2023 Choose France summit. He called the plant a decisive step toward securing European supplies, accelerating the energy transition and fostering strategic know-how for low-carbon mobility in Dunkirk.
Claude Imauven, Chairman of the Board of Directors of Orano, highlighted that cathode active materials account for a high proportion of the total value of an electric vehicle. As a producer of these materials, the Neomat CAM plant will play a major role in the regional industry.
Jiang Long, General Manager of XTC New Energy, said that since the launch of the strategic cooperation in 2021, Chinese and French teams have joined forces to cope with market cycles, technological challenges and transnational coordination, culminating in the official launch of the Neomat CAM plant. He pledged high standards of implementation for rapid production ramp-up and lasting contribution to a globally competitive and responsible low-carbon industry.
The partnership between XTC New Energy and Orano was first announced in 2023, with plans to establish two joint ventures to develop a shared industrial site in Dunkirk. In 2024, the two joint ventures were formally established: Neomat CAM for cathode active materials, and Neomat PCAM for precursors. The Neomat CAM joint venture is owned 51 percent by XTC New Energy and 49 percent by Orano, while the Neomat PCAM is owned 51 percent by Orano.
The broader Neomat industrial platform is being developed around these two entities, with the CAM plant serving as the first phase and the PCAM plant and recycling facilities to follow. Depending on market conditions, the platform's production capacity could eventually reach up to 80,000 metric tons per year. The overall project is expected to require a total investment of 1.5 billion euros (about 1.75 billion U.S. dollars) and create 1,300 direct jobs.
The project has also received strong support from the French government and the European Union through a range of industrialization and decarbonization initiatives, including the France 2030 plan launched to support its research activities. (Contributed by Li Wenxin, edited by Li Xueqing with Xinhua Silk Road, lixueqing@xinhua.org)
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