European auto battery manufacturer ACC, jointly owned by Stellantis, Mercedes, and TotalEnergies, has finalised a significant financing round aimed at establishing three “gigafactories” in France, Germany, and Italy. The completion of this financing marks a crucial milestone in ACC’s expansion strategy to meet the growing demand for lithium-ion batteries in the automotive sector.

Record-breaking financing

ACC has successfully secured EUR 4.4 billion in bank financing, representing a substantial portion of its total investment requirement of over EUR 7 billion. This financing round stands as one of the largest debt fundraising operations ever undertaken in the European automotive industry, highlighting the confidence of lenders in ACC’s project.

Confidence in ACC project

Yann Vincent, Managing Director of ACC, expressed confidence in the project, emphasising the high level of trust demonstrated by the participating lenders. The involvement of reputable financial institutions underscores the credibility and viability of ACC’s expansion plans.

Key players in financing

French lender BNP Paribas played a pivotal role as the exclusive financial adviser to ACC, facilitating financing agreements with a consortium of banks including Deutsche Bank, ING, Intesa Sanpaolo, Bpifrance, Euler Hermes, and SACE. This collaborative effort reflects a strong commitment to supporting ACC’s growth initiatives.

Expansion plans

The newly secured funds will enable ACC to establish four additional production lines, including a second unit in France, the first facility in Kaiserslautern, Germany, and two plants in Termoli, Italy. These expansions complement the existing production unit in Billy-Berclau, France, which commenced operations last year.

Stakeholder contributions

In addition to the bank financing, ACC’s shareholders – Stellantis, Mercedes-Benz, and Saft (a subsidiary of TotalEnergies) – will inject additional capital into the company. This underscores their commitment to advancing ACC’s mission and solidifying their positions in the evolving electric vehicle (EV) market.

Stakeholder distribution

Upon the completion of the financing round, Stellantis will hold a 45% stake in ACC, Mercedes-Benz will possess 30%, and Saft, representing TotalEnergies, will maintain a 25% ownership interest. This strategic distribution of stakes reflects the collaborative efforts of industry leaders to drive innovation and sustainability in the automotive sector.

Implications and future outlook

The financing secured by ACC signifies a significant step forward in Europe’s efforts to establish a robust battery manufacturing ecosystem. With the automotive industry’s transition towards electrification gaining momentum, ACC’s expansion is poised to enhance Europe’s competitiveness in the global EV market. The successful execution of these gigafactory projects is expected to contribute to job creation, economic growth, and environmental sustainability across the region.

ACC’s achievement of securing EUR 4.4 billion in financing underscores the growing importance of battery manufacturing in Europe’s automotive landscape. As the continent seeks to strengthen its position in the EV market, investments in gigafactory infrastructure will play a pivotal role in driving innovation and shaping the future of mobility. Collaborative efforts between industry stakeholders, financial institutions, and policymakers are essential to fostering a sustainable and competitive automotive industry in Europe.