Battery manufacturer Automotive Cells Company (ACC), backed by Stellantis and Mercedes-Benz Group, is set to sign a new loan to finance the second production block of its gigafactory in northern France, according to a company spokesman. The loan, valued at around 1 billion euros ($1.05 billion), is guaranteed by ACC’s two main shareholders. This expansion comes as ACC ramps up output despite a sluggish electric vehicle (EV) market in Europe.
The gigafactory currently operates one production block with a maximum capacity of 15 GWh. The second block, offering an additional 13 GWh, is already under construction. While the addition of a third production block—which would bring the site’s total capacity to 40 GWh—has not yet been decided, the company continues to focus on increasing its production capabilities.
ACC’s expansion contrasts with challenges faced by other European battery manufacturers. Competitor Northvolt filed for bankruptcy last month, raising concerns about the viability of other battery plants in Europe. In light of market conditions, ACC has suspended plans for two other gigafactory projects in Germany and Italy to reconsider the battery technologies to be employed. The company plans to outline roadmaps for these plants in the first half of 2025.
Despite market challenges, ACC announced plans to continue ramping up production of nickel-manganese-cobalt (NMC) batteries at its French plant. This decision follows Stellantis’s announcement to build a factory in Spain with China’s Contemporary Amperex Technology Co Ltd (CATL) to produce lithium iron phosphate (LFP) batteries. NMC batteries, known for higher energy density and cost, are suited for larger, high-end EVs, while LFP batteries, which are less dense but more affordable, are used in smaller vehicles.
Source: Reuters
