Automotive Cells Company (ACC) has launched battery production for electric vehicles in France, aiming to become a key player in European manufacturing. With its first factory operational and plans for three more, ACC targets significant growth, planning to produce up to 2.5 million battery packs by 2030. Despite initial challenges and rising operational costs, the company focuses on local production to compete with Asian manufacturers, while navigating the complexities of pricing and technology advancements.
ACC’s Journey in the Electric Battery Market
Four years post-establishment, Automotive Cells Company (ACC) has begun selling its batteries for electric vehicles, marking the first production of such batteries in France. Despite facing initial challenges as a startup, ACC is determined to emerge as a leading force in European battery manufacturing, striving to reduce dependence on the Chinese market.
Expansion Plans and Production Goals
ACC, a collaborative effort between Stellantis, TotalEnergies, Saft, and Mercedes, opened its first battery factory in May 2023 in Billy-Berclau, located in the Hauts-de-France region, with plans for three additional facilities. As it stands, the factory is projected to produce 2,000 battery packs in 2024, a modest number considering the significant investment of four billion euros secured this year. However, ACC aims for rapid growth, targeting 150,000 car equivalents in 2025, 250,000 in 2026, and an ambitious 2 to 2.5 million by 2030, which would account for 20% of the EU market share.
This initiative is being hailed as a ‘third industrial revolution’ in the region, promising to generate thousands of new jobs. With the EU’s impending ban on new thermal vehicle sales by 2035, the urgency to build a robust industrial sector for electric vehicle batteries is paramount to compete with established Asian manufacturers.
The first of ACC’s production blocks is already operational, supplying batteries for vehicles sold through Opel and Peugeot dealerships. Utilizing advanced NMC (nickel-manganese-cobalt) technology, these batteries are currently being integrated into the E-3008 model. A second production block is expected to commence operations in 2025, bolstering ACC’s manufacturing capabilities.
Located adjacent to a Stellantis factory focused on thermal engines, the Billy-Berclau gigafactory employs around 800 staff members. The facility maintains a sterile environment, with air being renewed 40 times an hour to minimize contaminants.
In the production area, workers clad in protective gear oversee the intricate process of creating aluminum and copper foils essential for battery cells. Production manager Cédric Souillart highlights the precision required, noting that the aluminum foil is exceptionally thin, measuring just 12 microns. He compares the operation of the machines to piloting a fighter jet, emphasizing the steep learning curve associated with mastering this technology. Initial production faced challenges, with frequent breakages leading to significant downtime for cleanup. However, Hubert notes that improvements are substantial, with 98% of the batteries produced now deemed marketable.
ACC is paving the way in France, being the sole operator of an active gigafactory for battery cells. Among the four gigafactories planned in the country, two are principally French and two are Asian. Experts like Pierre Paturel, director of studies at Xerfi, stress the need for Europe to cultivate local champions in the battery sector while accommodating factories from China and Korea.
As competition intensifies, especially regarding pricing, the reduction of government subsidies for electric vehicle purchases presents an additional hurdle. Hubert acknowledges that the battery currently comprises about 40% of a vehicle’s total cost and emphasizes the necessity of competitive pricing to succeed in the market. Despite the overall decline in battery prices, high operational costs in Europe remain a concern. Moreover, the rapid evolution of technology adds another layer of complexity to the landscape. In response to these challenges, ACC has recently announced a temporary halt in the construction of its additional factories in Termoli, Italy, and Kaiserslautern, Germany.