The French government Thursday said it plans to spend EUR1.5 billion on creating a battery-charging network for electric vehicles as part of a broader state strategy to encourage the development of clean vehicle technology and battery manufacturing.

It also said it would seek financing of EUR900 million for its EUR1.5 billion plan from a state loan that will be launched next year.

The government will make the installation of charging sockets obligatory in office parking lots by 2015, and new apartment blocks with parking lots will have to include charging stations starting in 2012.

A group of public and private fleet operators already has identified a need to purchase 50,000 electric vehicles through 2015, Environment Minister Jean-Louis Borloo told a reporters, and the government reckons that by pooling purchasing there is potential to reach a fleet of 100,000 vehicles by that date.

The plan involves setting up a battery manufacturing factory at a Renault SA (RNO.FR) facility at Flins, west of Paris, at a cost of EUR625 million, of which EUR125 million will be contributed by the French state's strategic investment fund.

The plant will have an annual production capacity of 100,000 batteries and will supply other French electric vehicle manufacturers, including PSA Peugeot-Citroen (UG.FR).

Peugeot-Citroen Chief Executive Philippe Varin said his company would have four small electric vehicles ready for sale in 2010, including two small city cars, one of which will be based on a vehicle that Peugeot-Citroen will buy in from Japanese partner Mitsubishi Motors Corp. (7211.TO), as well as small utility vehicles for both brands.

Renault Chief Operating Officer Patrick Pelata said Renault would have four mass-market electric vehicles on sale in 2011 and 2012.

He reaffirmed that Renault and alliance partner Nissan Motor Co. (7201.TO) together plan to invest a total of EUR4 billion in developing electric vehicle technology.

-By David Pearson, Dow Jones Newswires; +33 1 4017 1740; david.pearson@dowjones.com