Mercedes-Benz Buys 33% Stake in ACC Battery Project

By Soumya Duggal/ Updated On Sat, Sep 25th, 2021

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On its path toward an all-electric future, Mercedes-Benz is taking 33% stake in European battery cell manufacturer Automotive Cells Company (ACC) to scale up development and production of next-generation high-performance battery cells and modules, said an official statement.

As announced in July 2021, Mercedes-Benz is expected to go fully electric by the end of the decade – wherever market conditions allow. To reach its target, the company needs a total battery production capacity of more than 200 gigawatt hours by the end of the decade and plans to build eight cell factories worldwide together with partners, four of them in Europe. To transition from “Electric first” to “Electric only,” the luxury car is now joining ACC, a European battery joint venture between Stellantis, TotalEnergies and Mercedes-Benz that was founded in August 2020.

The entire ACC project will require an investment volume of more than 7 billion euros – in a combination of equity, debt and subsidies – to reach a capacity of at least 120 gigawatt hours in Europe by the end of the decade. Mercedes-Benz will invest a mid-three-digit-million euros amount next year. In total, the investments are expected to remain below one billion euros. The transaction is subject to customary closing conditions, including agreement on definitive documentation and regulatory approvals.

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ACC will supply Mercedes-Benz with high-performance battery technologies from its production locations from mid of the decade, said the company. The battery cell manufacturer is examining the expansion of its production network to include further locations in Europe.

“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,” said Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG.

“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,” he added.