Germany and France have set out a blueprint for a giant battery factory, advancing Europe's €5bn bid to rival the capacity of Tesla and China to supply the key part for electric vehicles (EVs).
The announcement at Germany's economy and energy ministry units underscores determination by European Union nations to catch up with Asian competitors that dominate battery making.
Battery cells and add-on electronic devices and software make up as much as half the value of EVs.
The facility at Groupe PSA-Opel's home base in Kaiserslautern involves Total's Saft Groupe in a plant that will be named the Automotive Cell Co. The plant will cost about €2bn and will complement a French factory in the Hauts de France region.
Germany and France "want to build the best and most sustainable batteries" in Europe, economy and energy minister Peter Altmaier said in a statement from Berlin on Friday. "I'm convinced that battery cells made in Kaiserslautern will set new standards in their CO2 footprint."
Together, the factories will cost about €5bn and add production capacity to 48 gigawatt-hours of batteries. Backed by the European Commission, France and Germany have dangled subsidies to win over sceptics within the auto industry about investing in the technology.