Stellantis, Mercedes-Benz, and Total Energies have successfully raised nearly €4.4 billion to construct four new EV gigafactories across the European Union. This move is part of a larger effort to strengthen the European EV sector and compete with China’s dominance in the industry.
Their goal is to raise approximately €7 billion to build factories for their jointly owned battery maker, Automotive Cells Company (ACC). ACC currently manufactures lithium-ion batteries in a gigafactory located in Billy-Berclau, northern France, which commenced operations last year.
The future factory sites include one in Kaiserslautern, Germany, two in Termoli, Italy, and an undisclosed location in France. These factories are projected to create a total of 6,000 new jobs. The financing for this venture is provided by banks such as BNP Paribas, ING, Deutsche Bank, and Intesa Sanpaolo. Additionally, the French and German governments have contributed about €1.3 billion.
The European automobile industry, with Stellantis and Mercedes-Benz as significant players, is making strategic moves to counter Chinese dominance in the EV sector and its control over the battery supply chain. According to Statistica, China produced approximately 5.47 million BEVs in 2022, accounting for over half of the global EVs.
In comparison, Europe is expected to build 36 gigafactories by the end of the decade, while China is projected to construct 160 more. Last month, Swedish lithium-ion battery producer Northvolt raised an additional $5 billion, adding to its $13 billion in equity and debt, to expand operations globally, with plans to build batteries in Poland, Germany, and Sweden.
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