German Daimler, parent company of Mercedes, among others, is buying a 33 percent stake in battery manufacturer Automotive Cells Company (ACC). This European company has to compete with Asian battery manufacturers that currently dominate this market. Daimler expects the total investment in ACC to rise to almost one billion euros.
Battery manufacturer ACC was founded last year by Stellantis, the company behind brands such as Peugeot, Citroën, Opel, Fiat and Chrysler, and the French oil and gas group TotalEnergies. They still own the remaining shares of ACC after the deal.
ACC will produce all battery components, so that the European car industry becomes less dependent on Asian manufacturers. According to Daimler CEO Ola Källenius, “ACC must ensure that Europe retains its leading role in the automotive industry even in an electric era.”
As part of the deal, Daimler will invest three million euros in the company next year. ACC will supply Mercedes-Benz with batteries from about 2025, Daimler reports. The German automaker also says that the battery cells produced are 95 percent recyclable.
Daimler wants to be “fully electric” by 2030. The company will build eight giga factories worldwide to build batteries on a large scale.