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French Battery Maker ACC Welcomes EU Auto Sector Support, but Expresses Concern Over Timeliness

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.

Italy’s Parliament Rejects Opposition Amendments to Space Bill

Italy’s parliament has rejected opposition amendments to a space bill that aimed to prevent the government from acquiring satellite services from non-EU companies, including those owned by U.S. tech billionaire Elon Musk. The amendments, proposed by the Democratic Party (PD), were viewed by some as attempts to limit competition in favor of European entities.

The draft bill, which still requires approval from both houses of parliament, outlines a framework in which Italy’s communications would be transmitted solely through satellites owned by operators based in the EU or the Atlantic Alliance (NATO). The goal is to ensure secure satellite communications for Italian diplomats and officials working in high-risk regions.

PD lawmakers sought to impose additional restrictions, proposing that Italy only work with non-EU satellite providers when absolutely necessary. They also pushed for exclusive Italian ownership and control over encryption and software and hardware components used in such services. However, the ruling coalition led by Prime Minister Giorgia Meloni opposed these amendments.

Among the companies that could potentially provide these satellite services is Starlink, a satellite internet service owned by Musk’s SpaceX. Starlink has been a key contender for securing the government contract. However, the PD has voiced concerns about working with Musk, a prominent ally of former U.S. President Donald Trump, describing the proposed deal as an “anti-Musk” move.

Andrea Stroppa, a representative for Musk in Italy, criticized the opposition’s stance, describing it as a “crusade” against the billionaire and warning that Starlink is not a “toy for politicians.” Additionally, other companies like Franco-British satellite operator Eutelsat (ETL.PA) have also been in talks with the Italian government regarding the secure communications contracts.

The rejection of the amendments has sparked debate, with PD lawmaker Andrea Casu calling for better guarantees regarding the use of public funds, especially when foreign companies are involved.

Eutelsat Competes for Secure Satellite Telecoms Contract in Italy

Eutelsat, a Franco-British satellite operator, is reportedly in discussions with the Italian government to provide secure satellite communication systems, a move that places it in direct competition with Elon Musk’s Starlink. The Italian government is seeking to ensure encrypted communications between officials, diplomats, and defense personnel working in high-risk areas. Sources close to the matter confirmed that Eutelsat, alongside Starlink, is being considered for the contract, which is critical to Italy’s national security.

The involvement of Eutelsat has not been previously disclosed, highlighting Europe’s desire to establish alternatives to Starlink, which currently dominates the satellite communication sector. This interest in European alternatives comes amid rising geopolitical tensions, particularly regarding the war in Ukraine, where Starlink’s role has become more contentious.

Eutelsat, which merged with OneWeb in 2023, operates a constellation of around 650 low Earth orbit (LEO) satellites. While its satellite network is smaller than Starlink’s 6,700 active satellites, Eutelsat’s shares have surged recently due to ongoing discussions with the European Union regarding internet access for Ukraine.

The company has confirmed its regular engagement with European governments to provide secure satellite communication services. However, Eutelsat declined to comment specifically on its talks with Italy, citing confidentiality.

The Italian government has expressed concerns about relying on foreign companies for sensitive national security contracts. Prime Minister Giorgia Meloni’s right-wing government has faced criticism for considering Starlink, especially given its ties to Elon Musk, who is also a close ally of U.S. President Donald Trump. While no contract has been signed with Starlink, Italy is considering alternatives, including developing its own low-orbit satellites. However, progress on this front has been slow, with delays in the EU’s IRIS² satellite project.

Reports suggest that Italy may consider a deal with Starlink worth 1.5 billion euros ($1.61 billion) over five years, although no agreement has been finalized.