The Chinese are writing a letter about Izera.  They want to convince the government to continue investing

The Chinese are writing a letter about Izera. They want to convince the government to continue investing

“The factory in Jaworzno will become one of the largest plants in the region producing only electric vehicles” – assures Daniel Li, president of Geely – one of the largest Chinese automotive concerns (owner of, among others, the Volvo brand) in a letter to Paweł Borys, president of the Polish Development Fund. ), which is a strategic partner of Jizera. The Chinese company also declares greater involvement in the project if it comes to fruition. The letter was obtained by Business Insider.

The Chinese are tempting, the government has doubts

As Business Insider points out, the new government has serious doubts about the validity of further work on Izera and applying for EU funds to build its factory. According to the original form of the document, the plant in Jaworzno could count on several hundred million euros from the KPO grant part. Without them, work on the plant will be practically impossible. The government is planning a revision of the document, from which the idea of ​​building the factory may “fall out”.

“It’s a big question mark. The biggest problem, purely in terms of implementation, is that the milestone tells about the readiness of the production line. Meanwhile, in 2024, no shovel has been broken into the construction of the factory. The investment process is so delayed that meeting the requirement to have the line ready by 2026 is practically impossible,” said Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Development, in an interview with Business Insider this week. Prime Minister Donald Tusk was also critical of Izera in a tweet on the X platform.

The Geely concern, which was supposed to be the main partner of Izera and the supplier of the platform on which the car will be built, hopes that the new authorities in Poland will want to continue the idea. The Chinese company aspires to strengthen its presence on the Old Continent. Contribution to the production of electric cars in Poland is to be an important part of this plan.

Wider cooperation

In a letter to PFR, the president of the Chinese giant emphasizes “significant opportunities to expand the strategic partnership” between Izera and Geely. “The scope of cooperation between EMP and Geely covers various areas, including vehicle development, platform technology licensing, supply chain and manufacturing support. Together, both teams achieved key product development milestones and built mutual trust during the process,” he notes.

Li argues that the completion of Izera will bring a number of benefits, including: employment at the factory reaching 7,000 jobs and up to 30,000 jobs in companies related to production, driving the green transformation in the post-mining area, and developing the region’s innovation.

Other forms of entry into the project may also be on the table. “Joint production in Jaworzno may also attract key suppliers in the EV value chain to Poland, such as batteries and large metal components,” Li writes in the letter. As Business Insider unofficially learns, the Chinese are considering, among others: construction of a battery factory for electric cars in Poland. However, the investment would depend on what ultimately happens to the plant in Jaworzno.

Electromobility Poland, the company responsible for the Izera project, claims that in cooperation with Geely, it will be able to complete the production line by 2026. “Currently, the goals of launching new production capacities for approx. 100,000 electric cars per year in mid-2026 are within the planned schedule. However, this requires quick decisions related to ensuring further financing of the project,” claims EMP. It adds that the schedule for the construction of the factory and the development of the Izera model range is secured in agreements with Geely, which are ready to be signed, waiting only for decisions on financing.