Automotive Cells Company (ACC) is on a mission to establish itself as a leader in electric vehicle battery production in Europe, challenging the dominance of Chinese firms. With its first factory opening in May 2023, ACC aims to produce 150,000 battery packs by 2025 and up to 2.5 million by 2030. The initiative, seen as a new industrial revolution, is expected to create thousands of jobs, but faces challenges in competition and production costs, prompting a temporary construction halt on additional facilities.
ACC’s Ambitious Journey in Electric Vehicle Battery Production
Since its inception four years ago, Automotive Cells Company (ACC) has embarked on an exciting journey to market its electric vehicle batteries, proudly manufactured in France. The company aspires to become a “champion of European sovereignty” in a sector overwhelmingly influenced by Chinese manufacturers. Established as a joint venture between Stellantis, TotalEnergies Saft, and Mercedes, ACC celebrated the opening of its first French battery factory in Billy-Berclau (Pas-de-Calais) in May 2023, with plans for three additional plants in the Hauts-de-France region.
Production Goals and Economic Impact
As ACC gears up for 2024, the factory anticipates producing 2,000 battery packs, a modest figure considering the expansive facility and the four billion euros secured in funding this year. However, the company is optimistic about scaling production, targeting 150,000 car equivalents by 2025, 250,000 by 2026, and reaching up to 2.5 million by 2030, aiming for a significant 20% market share within the European Union. This initiative is viewed as a “third industrial revolution” for the region, following the eras of textiles and mining, with the potential to create thousands of jobs.
The urgency of ACC’s mission is underscored by the EU’s plan to prohibit the sale of new thermal vehicles by 2035, necessitating the swift establishment of a robust industrial sector to rival Asian electric vehicle battery producers. ACC’s first production block is already operational, supplying batteries for vehicles at Opel and Peugeot dealerships, as shared by Matthieu Hubert, the Secretary General of ACC.
Utilizing NMC (nickel-manganese-cobalt) technology, these batteries are currently powering the E-3008 model. A second production block is slated to commence operations in 2025. Located adjacent to a Stellantis thermal engine factory, the Billy-Berclau gigafactory employs 800 individuals. The workshop is alive with the sound of a massive air blower, refreshing the air in the facility 40 times each hour.
Inside the pristine workshops, operators clad in white suits and masks oversee the intricate production of aluminum and copper “foils” that constitute the battery cells, utilizing rotary machines for the unwinding process. Maintaining an ultra-clean environment is crucial as the aluminum foil measures a mere 12 microns in thickness—five times thinner than standard kitchen foil. Production manager Cédric Souillart emphasizes the precision required, likening machine operation to piloting a fighter jet. Initially, the plant faced challenges, with several breakages daily that incurred lengthy clean-up times. Hubert acknowledges that mastering the manufacturing process is a lengthy journey, contributing to production results that may not align with initial expectations.
ACC has worked diligently to gain control over the machines imported from China, which were set up by Chinese partners. The company is making notable progress, with Hubert reporting that 98% of the batteries produced are currently market-ready. According to Pierre Paturel, director of studies at Xerfi, ACC stands out as the only operational gigafactory for battery cells in France.
Out of the four planned gigafactories in the country, two will operate under French ownership while the other two will be Asian-affiliated. To compete with Asian manufacturers, Paturel asserts the necessity of fostering local champions, alongside hosting factories from Chinese and Korean companies. The competition, particularly regarding pricing, is intense, especially as government incentives for electric vehicle purchases have been reduced. Hubert emphasizes the importance of becoming highly competitive, given that batteries account for approximately 40% of a vehicle’s price. Although battery prices are declining, Europe continues to face relatively high production costs. Additionally, the rapid pace of technological advancements presents another challenge. In response to these dynamics, ACC announced a temporary halt on the construction of its additional factories in Termoli, Italy, and Kaiserslautern, Germany.