Mercedes has announced a partnership with Stellantis to develop and manufacture battery cells that will power electric cars. Both automotive giants have made huge commitments towards going fully electric and emissions-free by the 2030s. The two will be equal partners in the Automotive Cells Company (ACC) that will make batteries for electric cars. ACC was founded by Stellantis last year.
"Mercedes-Benz to install battery cell capacity of more than 200 Gigawatt hours with partners, plans for eight Gigafactories," revealed the German giant. "On its path toward an all-electric future, Mercedes-Benz is taking an equity stake in European battery cell manufacturer Automotive Cells Company (ACC) to scale up development and production of next-generation high-performance battery cells and modules. As announced in July 2021, Mercedes-Benz will be ready to go fully electric by the end of the decade - wherever market conditions allow. To reach its target, the company needs a total battery production capacity of more than 200 Gigawatt hours by the end of the decade and plans to build eight-cell factories worldwide together with partners, four of them in Europe. Joining ACC is the next step on the luxury car maker's strategic course from "Electric first" to "Electric only," revealed the German giant.
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ACC will be spending a whopping 7 billion euros to achieve a production capacity of 120 GWh in Europe by the end of the decade. Mercedes has a bolder ambition and ACC is just based in France as of now. ACC was founded by Stellantis and Total Energies last year.
"Mercedes-Benz pursues a very ambitious transformation plan and this investment marks a strategic milestone on our path to CO2 neutrality. Together with ACC, we will develop and efficiently produce battery cells and modules in Europe - tailor-made to the specific Mercedes-Benz requirements. This new partnership allows us to secure supply, take advantage of economies of scale, and to provide our customers with superior battery technology. On top of that we can help to ensure that Europe remains at the heart of the auto industry - even in an electric era: With Mercedes-Benz as a new partner, ACC aims to more than double capacity at its European sites to support Europe's industrial competitiveness in the design and manufacturing of battery cells," said Ola Kallenius, the CEO of Daimler AG and Mercedes.
While Mercedes hasn't revealed the entire scope of investment, it did reveal that it is in the range of the mid 3 digit million Euros which is around the 500 million Euro mark. Recently, Mercedes showcased the electric versions of the E-Class, Maybach SUV, G-Class, and even the AMG EQS underlining its ambition.
