Published on September 24th, 2021 | by Subhash Nair0
Mercedes-Benz Buys 33% Stake In Automotive Cells Company
The acquisition will allow Mercedes-Benz to secure battery cell supply for EVs in the European market.
Mercedes-Benz has jsut announced that it has taken a 33% stake in the battery cell manufacturer Automotive Cells Company (ACC) in an effort to expand its source of battery cells for EVs produced in Europe. As it stands, most of Mercedes-Benz’s EV batteries are sourced from Asia.
ACC was founded in 2020 by the competing automotive conglomorate Stellantis and energy company TotalEnergies. ACC will begin to supply Mercedes-Benz production plants in France and Germany starting in 2025.
“Our focus is on Europe… That is where ACC wants to grow, expand, and develop technologies with us,” explained CEO Ola Kallenius.
Mercedes-Benz aims to transition to make only electric vehicles by the year 2030 if the market will allow for it. As such, this deal is essential. It will total $1.2 billion with the first cash investment coming in 2022. Adapting its plans, ACC has now projected to reach 120GWh of battery production capacity by the year 2030, previously targetting just 48GWh of capacity from its 2 plants.
Batteries sourced from ACC would be 95% recyclable too.
ACC already has a 2 billion euro battery plant in Germany allocated, which will come online in 2025.
Mercedes-Benz will continue to expand its control over the battery supply chain, with the idea of having 8 gigafactories with 200GWh of capacity available to them without actually producing the batteries in-house. They currently rely on partners CATL, SK Innovation and LG Chem with a small 3% stake in Farasis too.
Here’s the press release with more information
Stellantis, TotalEnergies and Mercedes-Benz have entered into agreements to welcome Mercedes-Benz as a new partner of Automotive Cells Company (ACC). Following its entry, the partners commit to increase ACC’s industrial capacity to at least 120 GWh by 2030. The transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.
ACC results from the initiative taken in 2020 by Stellantis and TotalEnergies and supported by the French, German and European authorities, to create a European battery champion for electric vehicles. The entry of Mercedes-Benz in ACC is a clear demonstration of the industrial progress and of the merits of the project, which it will strengthen.
ACC’s objective is to develop and produce battery cells and modules for electric vehicles with a focus on safety, performance and competitiveness, while ensuring the highest level of quality and the lowest carbon footprint. The updated ACC capacity plan will mobilize an investment of more than seven billion euros, which will be supported by subsidies and financed by equity and debt. The creation of this European battery champion will support Europe to address the challenges of the energy transition in mobility, ensure its security of supply of a key component for the electric car industry.
ACC will be supported by a winning trio of partners that combine:
- A deep technological expertise in battery development with Saft, an affiliate of TotalEnergies, which has more than 100 years of experience in the field of long-life batteries and battery systems.
- A leading global mobility player with Stellantis that has a clear mission to provide cutting-edge technology to ensure freedom of movement for all through distinctive, appealing, affordable and sustainable mobility solutions.
- The research and development expertise of Mercedes-Benz, along with its support to the expansion of ACC’s production facilities based on the brand’s benchmark quality standards.