Mercedes has a major electrification strategy that was updated towards the end of July. A pillar of this plan is the construction of 8 Gigafactory (4 in Europe) together with its partners, for a capacity of more than 200 GWh of cell production. In order to make the most of economies of scale, the new generation batteries will be standardized. This will make it possible to use them within most models.
Now, the automaker has taken a major new step forward in its strategy. Indeed, Mercedes has announced that it has entered the Automotive Cells Company (ACC) joint venture created by Stellantis and Total for the production of battery cells.
The builder has announced that it will acquire a 33% stake in the joint venture. This means that all partners will be equal. Following Mercedes’ entry, the partners pledge to increase ACC’s capacity to at least 120 GWh by 2030. A project that will require an investment of over seven billion euros that will be backed by grants and funded by equity and debt. Mercedes will invest an amount of around three million euros next year. In total, investments are expected to remain below €1 billion.
Thanks to the arrival of the new partner, ACC is also planning to expand its presence in Europe with additional locations. The goal is also to develop cells and battery modules that meet Mercedes’ high energy density, charging power and performance requirements. Battery production will be sustainable, in line with the German brand’s decarbonization goals.
The joint venture will mainly use renewable energy to build the cells. Other important aspects of sustainability are responsible sourcing of raw materials and the intelligent use of resources. Only raw materials extracted from certified mines will be used for the battery cells.
The aim will also be to create a closed cycle for the supply of raw materials for the batteries as they will be recyclable for over 95%. Ola Källenius , CEO of Mercedes, said:
Mercedes is pursuing a very ambitious transformation plan and this investment represents a strategic milestone on our path to CO2 neutrality. Together with ACC, we will efficiently and specifically develop and manufacture battery cells and modules in Europe to meet Mercedes’ requirements. This new partnership allows us to secure supply, take advantage of economies of scale and provide our customers with superior technology batteries. Furthermore, we will be able to help ensure that Europe remains at the center of the automotive industry, even in the age of electrification. With Mercedes as a new partner,
The transaction is subject to the final documentation agreement and customary closing conditions including regulatory approvals.
