French automotive supplier Valeo has been granted a financing package worth €600 million (£527m) to support its research projects focused on reducing vehicle carbon emissions and improving safety.

The funds from the European Investment Bank (EIB) will be allocated to the company’s Europe-based research projects, primarily in France but also in Germany, the Czech Republic and Ireland.

Funding will be provided for projects in the areas of electrification and the improvement of vehicle energy efficiency and safety, such as driving assistance, autonomous driving systems and smart lighting systems.

The projects support Valeo’s recently announced commitment to achieve carbon neutrality by 2050 across its entire value chain, which includes its suppliers, its own operating activities and the end use of products, aiming to reach 45% of the target by 2030.

Jacques Aschenbroich, Valeo’s Chairman and CEO said: “This financing is extremely important, particularly given the profound transformation taking place in the automotive industry.

“It will enable us to continue our research efforts to strengthen our technological leadership in the key areas of reducing CO2 emissions and improving road safety.”