A French automotive battery maker casts doubt on the European Commission’s pledge to boost domestic battery production by suggesting it may be too late.
The Automotive Cells Co. (ACC) welcomes the commission’s intentions to help automakers secure battery cells for battery-electric vehicles from European producers instead of relying on imports from China.
Part of Europe’s new auto industry strategic plan sees €1.8 billion ($1.94 billion) pledged to help secure supply chains for battery raw materials.
ACC, a joint venture owned by Stellantis, Mercedes-Benz and TotalEnergies, says in a post on LinkedIn that it welcomes the support from a “medium-term action plan” to help Europe's industry close the gap with Asian producers.
However, it also warns: “Nevertheless we fear that the urgency of the situation we are currently going through is not being considered. To benefit from it, we will have to have managed to survive until then.”
It adds that financial support is needed now rather than leaving it to some future date and that the European Union’s Innovation Fund pledge of €1 billion ($1.07 billion) made in December is enacted immediately.
Its statement says: “To survive and successfully ramp up our Gigafactory – a process that is proving longer and more expensive than expected – immediate support is essential. We are therefore calling for the activation of the Innovation Fund 2024 without waiting for 2025, 2026 or even 2027.”
The company has reduced battery cell production in the wake of slowing consumer demand for BEVs in most European markets and the emergence of more affordable battery chemistries coming from Asia, Reuters reports.
ACC it launched its first gigafactory in northern France in May 2023 and planned to open nine production plants by 2030, spread across France, Germany and Italy, backed by €7.3 billion ($7.8 billion) in investment.
Yet, in response to slower than expected take-up of BEVs, both the German and Italian projects are now on hold. Just one extra facility in France, producing batteries for Stellantis, is currently operational, with a second supposed to begin production at the end of this year.
