Daimler’s Increases European battery Network With 33% Stake In ACC Venture   – – Daily Cryptocurrency and FX News

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By taking a 33% stake in battery cell manufacturer Automotive Cells Company (ACC), Daimler’s (DAIGn.DE) Mercedes-Benz will be expanding its European sourcing of battery cells. That is a key to its EV ambitions and is currently produced primarily in Asia, it said on Friday.

Founded in 2021 by France’s Stellantis (STLA.MI) and TotalEnergies (TTEF.PA), ACC will begin supplying Mercedes-Benz with batteries from its production locations in France and Germany from the middle of the decade. Daimler Chief Executive Ola Kallenius told a press conference:

 “Our focus is Europe”. “That is where ACC wants to grow, expand, and develop technologies with us.”

The company said that if market conditions allow, Daimler plans on making exclusively electric vehicles by 2030, investing up to a billion euros ($1.2 billion) in the battery venture starting with a mid-three-digit-million-cash investment next year.

Despite ACC previously planning for 48 Gigawatt hours (GWh) of capacity at its two plants, it now aims to reach at least 120 GWh by 2030, a goal which will require seven billion euros in equity, debt, and subsidies, it said on Friday.

While declining to specify what proportion of ACC’s desired capacity would be allocated to Daimler, its board member Markus Schaefer, stated only that it was “absolutely significant”

Announcing its goal in July of building eight gigafactories with 200 GWh of capacity, the luxury carmaker, whose previous CEO deemed producing battery cells in-house too costly, has taken a strategic turn under Kallenius towards aiming for more control over its battery supply chain.

A 2 billion euro investment in a battery cell plant in Kaiserslautern, due to start production in 2025, indicates ACC already has ties to Germany.

ACC told Reuters that although it plans on expanding its European network, specific locations have not yet been determined.

After announcing in July that four of the eight gigafactories would be in Europe and one in the United States, Daimler is in discussion with potential partners in both regions about further investments. Kallenius said:

“Everyone talked to us, everyone wants to do business with us.”

He further said that the company planned on building all its cell factories through joint ventures.

“There are no concrete plans to make our own ‘Daimler-only’ factories.”

Daimler’s Asian partners such as CATL (300750.SZ), SK Innovation (096770.KS), and LG Chem (051910.KS) are its current battery suppliers and took a 3% stake in Chinese-American supplier Farasis last year.

CATL and Farasis are building battery factories in Germany, although production is not due to start until 2022 and 2024 respectively.

In line with its goal of a CO2-neutral supply chain by 2039, battery cells produced by ACC would be 95% recyclable, according to Daimler.

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