European Battery Manufacturer ACC Secures € 4.4 Billion for Expansion Across Three Gigafactories

A view shows the ACC logo at the gigafactory of Automotive Cells Company (ACC), a joint venture of Stellantis, TotalEnergies, and Mercedes, in Billy-Berclau-Douvrin, Northern France

ACC, a prominent European auto battery manufacturer co-owned by industry giants Stellantis, Mercedes, and TotalEnergies, has announced a significant milestone with the completion of a major financing round to establish three new "gigafactories" in France, Germany, and Italy.

The financing, totaling 4.4 billion euros ($4.74 billion), represents a substantial portion of ACC's overall investment requirement, estimated at just over 7 billion euros. This debt fundraising operation ranks among the largest ever conducted in the European automotive sector, according to ACC, also known as Automotive Cells Company.

"This deal with the banks reflects the very high level of confidence of these lenders in the ACC project," Yann Vincent, managing director of ACC, told Reuters.

French banking institution BNP Paribas played a pivotal role as the exclusive financial advisor to ACC in facilitating these financing deals. The agreements were struck with a consortium of prominent banks, including Deutsche Bank, ING, Intesa Sanpaolo, French public bank Bpifrance, Euler Hermes, and Italian export insurer SACE.

The infusion of funds will facilitate the construction of four new production lines for ACC, with plans for a second facility in France, an inaugural facility in Kaiserslautern, Germany, and two facilities in Termoli, Italy.

These developments build upon the success of ACC's initial production unit, which commenced operations last year in Billy-Berclau, northern France, specializing in the production of lithium-ion batteries.

In addition to the financing secured, ACC revealed plans for further cash injections from its three major shareholders, although the amount remains undisclosed. These additional funds will complement existing public subsidies already secured or committed by the company.