Geely eyes Poland as EU production site

With less than two years remaining to spend the €60 billion ($A99.4b) in EU loans and grants it has allocated, Poland is finalising a revision of the spending plan aiming to extend the deadline for the EV project known locally as Izera.

That name refers to the domestic EV brand that would be built in Warsaw with technical underpinnings from China's Geely Holding group.

However, Polish deputy minister of development funds and regional policy Jan Szyszko says that building the facility in partnership with Geely is not an ideal solution, while at the same time admitting that other operating projects, including bus production, had shortcomings too.

"Which philosophy we are closer to will be a decision at the highest political level and will certainly go beyond this building, to be clear," he said.

ElectroMobility Poland (EMP) has already signed a licence agreement with Geely to use its SEA (Sustainable Experience Architecture) platform for the Izera brand.

It is a move that comes as Chinese EV producers seek to expand their presence in the European Union, creating tensions with established players.

"Either this factory will be in Poland and Poles will buy these cars manufactured in Poland, or this factory will be in another EU country, employment will be in another EU country, and Poles will buy these cars from another EU country anyway," added Mr Szyszko.

Given the money already spent on the project, Mr Szyszko and others believe it should be continued. Experts will make a recommendation "within several weeks" as to whether it will go ahead.

The news comes at the same time China's Chery Auto is nearing a deal to start building cars in Spain - again with the assistance of European Union relief funds - and as Dongfeng Motors considers vehicle production in Italy.