The electric-car battery venture led by Stellantis and Mercedes-Benz is close to raising 4.4 billion euros ($4.7 billion) in debt to finance its expansion in Europe, according to people familiar with the matter.
Automotive Cells Company is in talks with a series of banks and may announce a debt agreement in the coming days, the people said, declining to be identified discussing confidential information. There is no certainty a deal will be reached.
ACC would use the money to expand its existing factory in France and fund plans for similar sites in Germany and Italy, the people said. A consortium of commercial banks such as BNP Paribas and state-owned lenders including Bpifrance may support the debt package, they said.
Battery plants are key for Europe’s efforts to set up a local electric-vehicle supply chain to rival Asia’s dominance. Automakers in the region have been trying to secure long-term cell supplies as they retool their factories to make EVs.
Stellantis and Mercedes also are planning to gradually raise their equity stakes in ACC by modifying the shareholdings of the venture’s third backer, TotalEnergies’s Saft, one person said.