Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Daimler expands European battery network with 33% stake in ACC venture

09/24/2021 | 05:42am EDT
FILE PHOTO: Ola Kaellenius, CEO of German luxury car manufacturer Daimler AG, speaks at the annual results news conference

BERLIN (Reuters) -Daimler's Mercedes-Benz said on Friday it will take a 33% stake in battery cell manufacturer Automotive Cells Company (ACC), expanding its European sourcing of battery cells key to its EV ambitions and currently produced primarily in Asia.

ACC, founded in 2020 by France's Stellantis and TotalEnergies, will begin supplying Mercedes-Benz with batteries from its production locations in France and Germany from the middle of the decade.

"Our focus is on Europe," Daimler Chief Executive Ola Kallenius told a press conference. "That is where ACC wants to grow, expand, and develop technologies with us."

Daimler, which plans on making exclusively electric vehicles in 2030 if market conditions allow, will invest up to a billion euros ($1.2 billion) in the battery venture starting with a mid-three-digit-million cash investment next year, the company said.

ACC, which had previously planned for 48 Gigawatt hours (GWh) of capacity at its two plants, now aims to reach at least 120 GWh by 2030, it said on Friday, a goal which will require seven billion euros in equity, debt and subsidies.

Daimler board member Markus Schaefer declined to specify what proportion of ACC's desired capacity would be allocated to Daimler, stating only that it was "absolutely significant".

The luxury carmaker, whose previous CEO deemed producing battery cells in-house too costly, has taken a strategic turn under Kallenius towards aiming for more control over its battery supply chain, announcing its goal in July of building eight gigafactories with 200 GWh of capacity.

ACC already has ties to Germany: a 2 billion euro investment in a battery cell plant in Kaiserslautern, due to start production in 2025.

The company plans on expanding its European network, but specific locations have not yet been determined, ACC told Reuters.

Daimler, which said in July that four of the eight gigafactories would be in Europe and one in the United States, is in discussion with potential partners in both regions about further investments.

"Everyone talked to us, everyone wants to do business with us," Kallenius said, adding that the company planned on building all its cell factories through joint ventures.

"There are no concrete plans to make our own 'Daimler-only' factories," Kallenius said.

Daimler currently relies on Asian partners such as CATL, SK Innovation and LG Chem for its battery supply, and took a 3% stake in Chinese-American supplier Farasis last year.

CATL and Farasis are building battery factories in Germany, but production is not due to start until 2022 and 2024 respectively.

Daimler added that the battery cells produced by ACC would be 95% recyclable as per its goal of a CO2-neutral supply chain by 2039.

($1 = 0.8516 euros)

(Additional reporting by Gilles Gillaume in PARIS; Editing by Christoph Steitz, Douglas Busvine and David Evans)

By Victoria Waldersee

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CONTEMPORARY AMPEREX TECHNOLOGY CO., LIMITED 4.57% 595.02 End-of-day quote.69.47%
LG CHEM, LTD. -1.08% 827000 End-of-day quote.0.36%
SK INNOVATION CO., LTD. 0.19% 259000 End-of-day quote.36.32%
STELLANTIS N.V. 0.08% 16.902 Delayed Quote.15.23%
TOTALENERGIES SE 0.62% 44.935 Real-time Quote.26.49%
Latest news "Economy & Forex"
07:20aToronto futures gain as commodity prices strengthen
07:19aFutures rise as upbeat earnings boost risk appetite
07:17aAnalysis-Bitcoin futures highlight some pitfalls for new ETFs
07:11aP&G beats quarterly sales estimates, warns of higher supply chain costs
07:11aFTSE Flat, Pound Still Likely to Weaken if BOE Lifts Rates
07:10a5 Reasons to Invest in Electric Gates for Your Home
07:05aFluid Metering Announces New Exclusive Distributor in Sweden
07:05aBass Player Clint ‘Payback’ Sands Rallies Hip Hop Pioneers for Check Your Risk Campaign for Diabetes Awareness Month
07:03aJ&J raises 2021 profit view, keeps vaccine sales outlook unchanged
Latest news "Economy & Forex"