Mercedes-Benz is taking an equity stake in European battery cell manufacturer Automotive Cells Company (ACC) to scale up development and production of next-generation high-performance battery cells and modules. Mercedes-Benz will become an equal ACC together with Stellantis and TotalEnergies, with each partner holding a 33% equity stake.
The entire ACC project will require an investment volume of more than seven billion euros – in a combination of equity, debt and subsidies – to reach a capacity of at least 120 Gigawatt hours in Europe by the end of the decade. Mercedes-Benz will invest a mid-three-digit-million euros amount next year.
ACC’s R&D center in Bordeaux (France) is operational and the pilot site in Nersac (France) will start production at the end of this year.
Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG., says: “Mercedes-Benz pursues a very ambitious transformation plan and this investment marks a strategic milestone on our path to CO2 neutrality. Together with ACC, we will develop and efficiently produce battery cells and modules in Europe – tailor-made to the specific Mercedes-Benz requirements. Mercedes-Benz pursues a very ambitious transformation plan and this investment marks a strategic milestone on our path to CO2 neutrality. Together with ACC, we will develop and efficiently produce battery cells and modules in Europe – tailor-made to the specific Mercedes-Benz requirements.”
He adds: “This new partnership allows us to secure supply, to take advantage of economies of scale, and to provide our customers with superior battery technology. On top of that we can help to ensure that Europe remains at the heart of the auto industry – even in an electric era: With Mercedes-Benz as a new partner, ACC aims to more than double capacity at its European sites to support Europe’s industrial competitiveness in the design and manufacturing of battery cells.”
Yann Vincent, CEO of ACC, comments: “To have Mercedes-Benz join us as a new shareholder is a major milestone for ACC. Mercedes-Benz will bring a vote of confidence in our technology roadmap and product competitiveness that significantly strengthens ACC’s business potential and underpins our ambitious growth plans. This is our contribution to an electric and sustainable future.”
As announced in July 2021, Mercedes-Benz will be ready to go fully electric by the end of the decade – wherever market conditions allow.
To reach its target, the company needs a total battery production capacity of more than 200 Gigawatt hours by the end of the decade and plans to build eight cell factories worldwide together with partners, four of them in Europe.