Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Daimler expands European battery network with 33% stake in ACC venture

Stock MarketsSep 24, 2021 05:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Mercedes logo in Stuttgart, Germany, February 11, 2020. REUTERS/Andreas Gebert/File Photo

By Victoria Waldersee

BERLIN (Reuters) -Daimler's Mercedes-Benz said on Friday it will take a 33% stake in battery cell manufacturer Automotive Cells Company (ACC), expanding its European sourcing of battery cells key to its EV ambitions and currently produced primarily in Asia.

ACC, founded in 2020 by France's Stellantis and TotalEnergies, will begin supplying Mercedes-Benz with batteries from its production locations in France and Germany from the middle of the decade.

"Our focus is on Europe," Daimler (OTC:DDAIF) Chief Executive Ola Kallenius told a press conference. "That is where ACC wants to grow, expand, and develop technologies with us."

Daimler, which plans on making exclusively electric vehicles in 2030 if market conditions allow, will invest up to a billion euros ($1.2 billion) in the battery venture starting with a mid-three-digit-million cash investment next year, the company said.

ACC, which had previously planned for 48 Gigawatt hours (GWh) of capacity at its two plants, now aims to reach at least 120 GWh by 2030, it said on Friday, a goal which will require seven billion euros in equity, debt and subsidies.

Daimler board member Markus Schaefer declined to specify what proportion of ACC's desired capacity would be allocated to Daimler, stating only that it was "absolutely significant".

The luxury carmaker, whose previous CEO deemed producing battery cells in-house too costly, has taken a strategic turn under Kallenius towards aiming for more control over its battery supply chain, announcing its goal in July of building eight gigafactories with 200 GWh of capacity.

ACC already has ties to Germany: a 2 billion euro investment in a battery cell plant in Kaiserslautern, due to start production in 2025.

The company plans on expanding its European network, but specific locations have not yet been determined, ACC told Reuters.

Daimler, which said in July that four of the eight gigafactories would be in Europe and one in the United States, is in discussion with potential partners in both regions about further investments.

"Everyone talked to us, everyone wants to do business with us," Kallenius said, adding that the company planned on building all its cell factories through joint ventures.

"There are no concrete plans to make our own 'Daimler-only' factories," Kallenius said.

Daimler currently relies on Asian partners such as CATL, SK Innovation and LG Chem for its battery supply, and took a 3% stake in Chinese-American supplier Farasis last year.

CATL and Farasis are building battery factories in Germany, but production is not due to start until 2022 and 2024 respectively.

Daimler added that the battery cells produced by ACC would be 95% recyclable as per its goal of a CO2-neutral supply chain by 2039.

($1 = 0.8516 euros)

Daimler expands European battery network with 33% stake in ACC venture
 

Related Articles

Logitech quarterly sales rise on work-from-home boom
Logitech quarterly sales rise on work-from-home boom By Reuters - Oct 25, 2021

(Reuters) -Logitech International SA reported on Tuesday an increase in its sales in the second quarter as the computer peripherals maker continued to see a surge in demand for...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email