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March 23, 2022 04:47 AM

Stellantis affirms commitment to build battery factory in Italy with Mercedes, TotalEnergies

ACC, the joint venture of Stellantis, Mercedes and TotalEnergies, has finalized a deal with the Italian government to build a battery factory.

Reuters
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    PSA/Total pilot battery plant

    A rendering of a pilot battery cell factory in Nersac, France, that is being built by Automotive Cells Company, a joint venture between Stellantis, Mercedes-Benz and TotalEnergies.

    ROME – Automotive Cells Company, a joint venture between Stellantis, Mercedes-Benz and TotalEnergies, has confirmed that it will build a battery factory in Termoli, southern Italy.

    The Termoli factory will be converted from an existing engine plant.

    ACC on Monday signed a memorandum of understanding with the Italian government to build the factory, the joint venture’s third.

    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.

    Rome pledged last month to provide 369 million euros ($407 million) of public money for Termoli, and Stellantis CEO Carlos Tavares said the investment for the new site could be similar in size to those planned for the gigafactories in France and Germany, where the investment is seen at around 2 billion euros each.

    ACC said in a statement Wednesday that the three partners have committed to increase total industrial capacity to at least 120 gigawatt hours by 2030 and scale up the development and production of next-generation high-performance battery cells and modules.

    The updated capacity plan will mobilize an investment of more than 7 billion euros, ACC said in the statement.

    The production capacity of ACC’s French and German plants will each be increased to 40 GWh from the 24 GWh initially planned. Those plants are expected to come on line in 2023 and 2025, respectively.

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