EMP as an instrument of state industrial policy.

ElectroMobility Poland (EMP) CEO Tomasz Kedzierski announces a new phase in the company’s development. The Polish electric car project is giving way to a broader vision of a modern manufacturing and development hub. The main goal of this investment is not only to launch the production of a European car brand in cooperation with a global partner, but also to create a thriving, market-oriented entity with headquarters located in Poland.

According to EMP’s CEO, increasing wealth in middle-income countries requires economic transformation, support for investment and technology development. Automotive is one of the most dynamic industrial sectors. The situation of the industry in Europe is deteriorating significantly. This is caused by strong competition from Chinese automotive companies and geopolitical changes. The turbulent market situation is further compounded by the United States’ introduction of tariffs on cars, parts and components.

For Poland, as one of the key suppliers to automakers, this could pose a major challenge, but also an opportunity to strategically reposition itself on the international stage. This is contingent on locating new car production facilities that will influence the development of competencies in areas such as ICT, automation, engineering and innovation.

Successful countries do not limit themselves to importing solutions, but actively participate in their creation, implementation and improvement. Technology-driven economic growth therefore requires long-term strategies in the areas of education, R&D infrastructure and cooperation between the public and private sectors, comments Tomasz Kedzierski, president of Electromobility Poland.

New idea for EMP. Reducing business risk the foundation for changing the project concept

The answer to current challenges is to be a modified vision of the project in which ElectroMobility Poland, together with a global partner, will co-create a European car brand. The cars will be produced in a modern factory in Jaworzno, the company’s headquarters will be located in Poland. New ventures such as an innovation center, a local supply chain and research and development units are to be created around the investment, creating a production and development hub.

The holistic approach makes the project an effective tool of industrial policy – conducted by the state and is a proactive response to dynamic market changes, Tomasz Kędzierski emphasizes.

Thanks to its location in the Silesian province, the EMP will have access to highly qualified personnel and infrastructure, which is conducive to the effective implementation of investments.

EMP as an effective instrument of state industrial policy

The EMP project is in line with the concept of proactive state industrial policy, increasingly accepted by economists, which aims to increase the country’s competitiveness and technological transformation of the economy.

The EMP project in its new formula also fits in with the assumptions of the government’s “650 billion+” investment strategy, aimed at the country’s energy and technological transformation. The Jaworzno investment will create a local supply chain covering up to 80% of the value of car components. In addition, 20-30,000 jobs will be created in the region, of which about 1000 in the area of R&D. The ability of Polish companies to advance in global value chains will also increase.

Pragmatism instead of dogma, or what instead of Izera?

The EMP president openly points to the reasons for the Izera project fiasco:

Poland’s flagship electromobility project – which Izera undoubtedly was – ultimately got bogged down in the shoals, onto which it was led by delays caused by a lack of stable financing. According to previous assumptions, the funds from the NIP enabling the project were supposed to come to the company in early 2023. Failure to release them by the end of 2023 resulted in a break in project continuity and the need to update almost all assumptions.

EMP’s new concept assumes the co-responsibility of a strategic partner. Instead of developing a car brand from scratch on its own, EMP will act as a co-investor and coordinator of joint ventures. This is to minimize market risks.

This pragmatic approach enhances the competitiveness of the Polish economy and supports the state’s long-term social and economic goals. The company is preparing to apply for project financing under the NIP. Discussions are currently underway with potential EMP partners who could participate in the project.

The state as a catalyst, not a substitute for the market

The EMP chairman distances himself from accusations of state interventionism. The new project is part of an approach that combines the responsible role of the state with an understanding of free market rules. Strategic investments are meant to be an impetus, not a substitute.

A wise corporate strategy using global partnerships and supported by the tools available to the state will create a system of interconnected vessels – a hub that will affect many areas of a key sector from an economic perspective,” adds Tomasz Kedzierski.

The EMP project in its new formula can cover not only automotive, but also energy and digital mobility services, fitting into the broader context of the transformation of the economy.