ACC halts plant construction in Germany, Italy

ACC halts plant construction in Germany, Italy

ACC halts plant construction in Germany, Italy 150 150 Batteries International

June 14, 2024: Car battery maker Automotive Cells Company is pausing work on factories in Germany and Italy as it considers moving to LFP manufacturing.

The shift from high energy lithium cells to a less-expensive battery technology comes amid slowing demand for electric vehicles and concerns over cheaper, more competitive EVs being shipped from China.

“ACC is adapting its battery supply strategy to add new low-cost cell chemistries to the portfolio, in response to shifts in market demand toward less expensive vehicles,” ACC, secretary general Matthieu Hubert said.

“The European automotive industry is facing slower growth in demand for electric vehicles and simultaneously, increasing competitive pressure, leading the company to review its ‘development roadmap.”

On June 4, the company said it needed to research and develop low-cost batteries to supply cheaper EVs and that it would confirm its industrial and construction timeline by the end of the year or early 2025.

ACC, a battery joint venture backed by carmakers Stellantis and Mercedes and France’s TotalEnergies began producing batteries at its first ‘gigafactory’ in northern France last year, for the Peugeot 3008 midsize family car, and a second production line is set to start operating in the coming months.

In February, the company said it had secured €4.4 billion ($4.8 billion) in financing to build out its capacity, for a total of 13 production lines.

As a result, it has stopped work on the factories in Kaiserslautern, Germany, and Termoli, Italy, to evaluate the viability of developing LFP technologies at the sites.