Mercedes-Benz Gets 33% Stake in ACC Battery Project

Sep 27, 2021 10:33 AM ET
  • On its course toward an all-electric future, Mercedes-Benz is taking 33% risk in European battery cell maker Automotive Cells Company (ACC) to scale up advancement as well as manufacturing of next-generation high-performance battery cells and also modules, claimed an official declaration.

As announced in July 2021, Mercedes-Benz is anticipated to go totally electrical by the end of the decade-- wherever market problems permit. To reach its target, the company needs a total battery manufacturing capacity of more than 200 gigawatt hours by the end of the years and also intends to develop eight cell factories worldwide together with partners, 4 of them in Europe. To transition from "Electric first" to "Electric only," the luxury cars and truck is currently signing up with ACC, a European battery joint endeavor in between Stellantis, TotalEnergies as well as Mercedes-Benz that was founded in August 2020.

The whole ACC project will certainly call for a financial investment volume of greater than 7 billion euros-- in a combination of equity, financial obligation as well as subsidies-- to reach a capacity of at least 120 gigawatt hours in Europe by the end of the years. Mercedes-Benz will certainly spend a mid-three-digit-million euros amount following year. In total amount, the investments are anticipated to remain listed below one billion euros. The purchase undergoes customary closing conditions, consisting of agreement on definitive documentation and regulatory approvals.

ACC will supply Mercedes-Benz with high-performance battery technologies from its manufacturing places from mid of the years, said the company. The battery cell producer is taking a look at the expansion of its production network to include further areas in Europe.

"Mercedes-Benz pursues an extremely ambitious improvement plan and also this financial investment notes a calculated turning point on our path to CO2 nonpartisanship. Along with ACC, we will certainly develop and effectively create battery cells and also modules in Europe-- custom-made to the details Mercedes-Benz requirements," stated Ola Källenius, Chief Executive Officer of Daimler AG and Mercedes-Benz AG.

"This new partnership allows us to secure supply, to benefit from economic situations of scale, as well as to supply our customers with premium battery technology. On top of that we can help to guarantee that Europe continues to be at the heart of the auto market-- also in an electric era: With Mercedes-Benz as a brand-new companion, ACC intends to greater than dual capacity at its European sites to support Europe's commercial competition in the style and also production of battery cells," he included.