France and Germany have announced a joint effort to turbocharge battery cell production in Europe, taking aim at a business currently dominated by Asian firms.

As Bloomberg reports, German Economy and Energy Minister Peter Altmaier and French Economy and Finance Minister Bruno Le Maire have announced that Germany will invest one billion euros, and France 750 million euros, in the form of subsidies to finance building factories in their respective countries.

The goal of the joint initiative is to create a new European industry, Le Maire told reporters at a recent meeting in Berlin. Factories in Europe will produce battery calls and packs, covering the entire value chain. The strategy is designed to “ensure global leadership for Europe in both electric vehicle technology and autonomous driving,” said Le Maire.

France and Germany hope to persuade Spain, Sweden and Poland to join their initiative, said Altmaier. He added that offering subsidies to support the construction of the battery cell factories will have to be approved by the European Commission, which will likely address the issue in April.

Source: Bloomberg