Automotive Cells Company (ACC), a French battery manufacturer, expressed its support for the European Union’s action plan to bolster the auto sector, but also voiced concerns that the measures may arrive too late to address current challenges.
The European Commission recently introduced an action plan aimed at helping the auto industry achieve zero carbon emissions from cars and vans by 2035. A key element of this plan is the allocation of 1.8 billion euros ($1.94 billion) to help secure the supply chains for battery raw materials.
While ACC, a joint venture between Stellantis, Mercedes, and TotalEnergies, welcomed the medium-term support outlined in the plan, the company raised concerns about the urgency of the situation. In a LinkedIn post, ACC noted, “Nevertheless, we fear that the urgency of the situation we are currently going through is not being considered. To benefit from it, we will have to have managed to survive until then.”
ACC has been forced to scale back its battery production ambitions amid uncertainties surrounding electric vehicle demand in Europe and the rise of more affordable battery technologies. The company initially planned to build nine production blocks by 2030 across France, Germany, and Italy, supported by a 7.3 billion euro investment. However, the projects in Germany and Italy have been put on hold, and currently, only one block in France is operational, producing batteries for Stellantis. A second block is expected to begin operations by the end of the year.
