Automotive Cells Company (ACC), the French EV battery technology company owned by Stellantis, Mercedes-Benz and Saft/Total Energies, announced the suspension of plans to set up new battery plants in Kaiserslautern, Germany, and Termoli, Italy.
The company told Reuters that ACC needs to research and develop low-cost batteries to supply cheaper EVs and that it would confirm its industrial and construction timeline in late 2024 or early 2025.
ACC said its first gigafactory in Billy-Berclau Douvrin, Hauts-de-France, inaugurated in May 2023, is not affected by the decision. The plant is about to start large-scale production.
The original plans were to invest €7 billion ($7.6 billion) for the three factories. In February, ACC closed a €4.4 billion ($4.8 billion) debt-raising for the expansion plans.
As the EV market slows down the European battery manufacturers are under pressure from growing exports by Chinese companies that largely use cheaper LFP batteries, significantly reducing their cost of production.
The EU Commission said today (Wednesday) it would introduce extra duties on imported Chinese vehicles of up to 38.1% in what is seen as another attempt to protect European production and jobs.
Stellantis has agreed with China’s leading battery producer CATL to build an LFP battery production plant in Europe.
Stellantis CEO Carlos Tavares told journalists: “We are going to adjust our investment plans on EVs to the pace at which market sales of EVs grow.” He was asked at a media briefing whether the company still supported three ACC factories in Europe in addition to the CATL joint venture. “We do not control that speed,” he added.
Mercedes said in a statement that it was committed to ACC and that its electrification strategy remained on track. Saft and TotalEnergies also said they remain committed to continuing to work with ACC as a long-term shareholder and by bringing technological know-how.
