ACC secures €4.4 Billion debt for European battery expansion

Automotive Cells Company (ACC), a European startup specializing in battery technology for electric vehicles, has closed a €4.4 billion debt raising. The funds will primarily be used to establish three new gigafactories for lithium-ion battery cell production in France, Germany, and Italy. Additionally, a portion of the funding will go towards advancing research and development initiatives. €4.4 billion has been secured in one of Europe’s largest-ever debt raisings in this industry to develop four production blocks, including the one currently in operation in France (Billy-Berclau/Douvrin).

ACC is a joint venture between Stellantis, Mercedes-Benz and TotalEnergies, through its subsidiary Saft, behind the technology used by ACC. This initiative is supported by France, Germany, Italy, and the European Union.

Automotive Cells Company (ACC) has commenced production for Stellantis at its Billy-Berclau Douvrin Gigafactory (France) in December 2023. This development lays the groundwork for further industrial progress to meet demand, with construction initiated on the second block at the French site and plans underway to begin construction on the first block in Germany and the double block in Italy.

The debt package, fully underwritten by a consortium of commercial banks including BNP Paribas, Deutsche Bank, ING, and Intesa Sanpaolo, with support from Bpifrance, Euler Hermes, and SACE, will finance these capacities.

“The transition to the electrification of vehicles is still on the way. To meet this immense challenge, our customers must be able to rely on robust and reliable European players like ACC, capable of delivering high volumes of competitive batteries with a low CO2 footprint. With this world-class financial community supporting us, we see clear evidence of the confidence that is placed in the ACC project. Beyond this operation, we will determine our needs as and when we conclude additional contracts. We are resolutely looking to the future, with a view to achieving our objective of growing our production capacities,” said Yann Vincent, Chief Executive Officer of ACC.

According to the company statement, Stellantis, Mercedes-Benz, and Saft, the three shareholders of ACC, are actively engaged in collaborating with ACC and participating in a capital increase to facilitate its success. By the end of March 2024, alongside the upcoming capital injection, Stellantis will hold 45% of ACC’s shares, Mercedes-Benz 30%, and Saft 25%. Stellantis and Mercedes-Benz confirm their commitment as major shareholders and customers of ACC’s battery modules. They will support ACC’s capital shareholding and intend to incrementally raise their equity stakes. Saft, a wholly owned subsidiary of TotalEnergies, remains dedicated to its long-term collaboration with ACC, providing technological expertise.

BNP Paribas acted as exclusive financial adviser to ACC, Séverine Mateo, head of the Low Carbon Transition Group, commented: “ACC and BNP Paribas share the same ambition, which is to accelerate the transition to a different and more sustainable mobility. During our engagement alongside ACC, we have been impressed by the expertise and commitment of their teams to deliver on their ambition and are proud to be contributing to their success by advising them on their financing journey”.

Also read: Tata Group to set up a Lithium-ion cell Gigafactory in the UK