NIDEC STELLANTIS E MOTORS NEW PROJECTS 2022-2024

The project concerns the Promoter's development of new electric drive technologies for vehicles as well as the set-up of their manufacturing.

The project concerns the Promoter's expenditures for the development of electric drive technologies for vehicles, and also for the set-up of their manufacturing. The research and development (R&D) concerns the development of four electric motors to be used in Battery Electric Vehicles as well as inverters for the electric motors. The R&D activities will be carried out in existing technical centres in Carrières-sous-Poissy (Île-de-France). The manufacturing will be fully automated and based on Industry 4.0 principles, and will be carried out in an existing plant in Tremery in the region Grand-Est.

The project concerns the promoter's investments for the development of innovative cost efficient products and technologies, important for the acceleration of vehicle electrification in the volume vehicle segment. It will lead to important environmental externalities through the market deployment of the concerned technologies, and will contribute to further knowledge creation, accumulation and diffusion along with workforce reskilling to operate in the evolving technology and market context.

The investments contribute to the Bank's "Innovation, Digital and Human Capital" and Climate Action and Environmental Sustainability policy objectives. EIB financing supports investments addressing

the market failures and gaps associated with imperfect competition and incomplete markets (very innovative and market-entry stage vehicle electrification technologies, contributing to lower barriers to adoption and helping the development of a complete supply chain) and those associated with

positive environmental and knowledge externalities.

This project helps the promoter in the development of powertrain electrification technologies; it helps addressing the ongoing transformation of the automotive and the wider mobility industry and it makes possible furthering its technological competence and capacity to compete in such growing fields of technology and business. The project will add to the social welfare and bring about social benefits, by generating environmental and knowledge positive externalities.

The promoter is a young organisation with strong management continuously building up its expertise in the area; in addition the parent companies bring strong and complementary expertise in the areas of technology, automotive knowledge and volume manufacturing, helping in the implementation of a sound and sustainable project, integrating positive environmental and social dimensions, helping to address and mitigate market failures, and contributing to the Bank's policy objectives.

The EIB financing will help the borrower access long-term corporate debt despite its start-up nature. It will also provide greater financial flexibility for drawdowns and repayments. In addition, the EIB financing will provide a strong positive signal to the borrower's shareholders and the financial markets. It will show the EIB's continuing support to the borrower and to the electrification of vehicles, particularly in times of uncertainties triggered by the COVID-19 crisis. The project is expected to be one of the first corporate project in France to be labelled an "EIB green loan", as it is 100% Climate Action. The Bank's technical contribution and advice is explained by the guidance provided to align the project scope with policy objectives at project origination and the monitoring requirements during project implementation.

The R&D activities will take place within existing facilities without changing their authorised scope and therefore do not fall under Annex I and II of Directive 2014/52/EU amending 2011/92/EU. The component related to the manufacturing of motors falls under Annex II of the said Directive. The outcomes of the project will enable the volume deployment of electrified vehicles, contributing thus to the decarbonisation of the automotive sector. All environmental details will be evaluated during the project's due diligence.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would require the Promoter to apply those rules.