Renault SA laid out financial goals for its electric vehicle arm Ampere — including breakeven on an operating basis as soon as 2025 — as it readies the division for an initial public offering.

The French carmaker, which described the unit as “a growth story,” is targeting a 30% compound annual growth rate until 2030, the company said in a statement late Monday. Chief Executive Officer Luca de Meo will take on the additional roles of CEO and chairman of the electric-vehicle arm.

Even as Renault gives an upbeat outlook for Ampere, the business faces several challenges as de Meo works to bring it to market. Price cuts in Europe from US rival Tesla Inc., for example, risk denting demand for a new model touted as key for the carmaker’s turnaround, the fully electric Megane E-Tech. To fend off the competition, Renault is reintroducing a lower-priced Megane E-Tech version featuring a smaller battery.

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De Meo is trying to raise funds for EV development and narrow the gap with larger rivals such as Stellantis NV. Japanese partner Nissan Motor Co. has pledged to buy as much as 15% of Ampere, with Mitsubishi Motors Corp. considering an investment. Qualcomm Inc., the largest maker of smartphone processors, will also back the business.

The company is targeting the IPO of Ampere as soon as the fourth quarter and has already selected investment banks to work on the planned listing, Bloomberg reported in April. Renault will hold a capital markets day for the unit in the second half.

(Updates with market details in fourth paragraph.)