Automotive Cells Company has closed $4.7 billion to help fund the construction of three lithium-ion battery gigafactories in France, Germany, and Italy.
The debt package is supported by the company’s three shareholders, Stellantis, Mercedes-Benz, and Saft, a subsidiary of TotalEnergies. Stellantis and Mercedes-Benz, which own a 45% and 30% stake in Automotive Cells Company (ACC), respectively, have agreed to modify the company's capital shareholding plan and participate in a capital increase. Meanwhile, Saft aims to remain a long-term shareholder and provide technological expertise to the company.
ACC said the funding will strengthen its position as a key player in Europe’s electric vehicle battery industry. ACC began battery production for Stellantis in France at its Billy-Berclau Douvrin Gigafactory at the end of 2023, and funding will allow for construction of a second production line at the site in France, a first production line of construction in Germany, and two new production lines in Italy.
“The transition to the electrification of vehicles is still on the way,” said ACC CEO Yann Vincent. “To meet this immense challenge, our customers must be able to rely on robust and reliable European players like ACC, capable of delivering high volumes of competitive batteries with a low CO2 footprint. With this world-class financial community supporting us, we see clear evidence of the confidence that is placed in the ACC project.”
ACC, founded in 2020, has experienced rapid growth amidst the shift towards EVs in Europe and aims to be smart-manufacturing more than 2 million lithium-ion batteries a year by 2030. Its first gigafactory was built just two and a half years after the company’s founding.
Additional EV battery companies have experienced similarly immense, quick expansion as car companies increasingly make commitments to going electric, some planning to shift their fleet altogether. In 2021, Mercedes-Benz committed to going all electric where markets allow, including making all of its new architectures electric-only starting in 2025. Stellantis has also set targets to reach a 100% passenger car battery-electric vehicle sales mix in Europe and 50% in the United States by 2030.
With an EV market that depends heavily on battery production, ACC joins other lithium-ion battery producers in quickly scaling-up battery production through major investments. Battery company, Northvolt, also recently announced that it raised a $5 billion green loan for expansion of its gigafactory and battery recycling plant in Sweden.
