Mercedes-Benz announced today it is taking a 1/3 equity stake in European battery cell manufacturer Automotive Cells Company (ACC), with planned investments of hundreds of millions of euros, joining automotive manufacturer Stellantis, and energy company TotalEnergies as an equal shareholder in the EV “battery champion.”
With the introduction of the new partner, ACC aims to accelerate its development, targeting at least 120 Gigawatt hours of cell capcacity by 2030.
Yann Vincent, CEO of ACC, said:
“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.”
ACC was founded in 2020 by Stellantis and TotalEnergies, supported by the French, German and European authorities in order to create a European battery champion for electric vehicles. The company aims to develop and produce battery cells and modules for EVs with a focus on safety and performance, while ensuring the lowest carbon footprint. The updated ACC capacity plan will require an investment of more than 7 billion.
Mercedes-Benz will support ACC with its expertise in battery technology and will contribute to the expansion of ACC’s production network based on the brand’s quality standards. TotalEnergies will bring technological expertise in battery development with its affiliate, Saft, while Stellantis will provide industrialization expertise through its brand diversity, size and global footprint.
Mercedes-Benz stated that joining ACC is the next step on its strategic course from “Electric first” to “Electric only”. Earlier this year, the automaker announced plans to electrify its automotive fleet, including a goal to be ready to go all electric by 2030, where market conditions allow. To reach its target, the company stated that will need a total battery production capacity of more than 200 Gigawatt hours. ACC will supply the company with high-performance battery technologies from its production locations from mid-decade.
Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG, said:
“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.”
“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.”
Carlos Tavares, Stellantis CEO, said:
“We welcome Mercedes-Benz as a strategic partner who shares our ambition to accelerate ACC’s leadership,” said Stellantis CEO Carlos Tavares. “Stellantis’ electrification strategy is running full-speed ahead, and today’s announcement is the next step in our plan to be the automotive frontrunner, with all 14 brands committed to offering best-in-class fully electrified solutions that meet demands of customers. This consortium leverages our shared technical expertise and manufacturing synergies, and continues to ensure that Stellantis leads the way the world moves in the most efficient, affordable and sustainable way.”