ACC Clinches €4.4 Billion Financing for Gigafactories in Europe

ACC Clinches €4.4 Billion Financing for Gigafactories in Europe

In a landmark move for the automotive sector, ACC (Automotive Cells Company), backed by industry giants Stellantis, Mercedes, and TotalEnergies, has finalized a major financing deal to propel the development of its three gigafactories across Europe. The company heralded the €4.4 billion bank financing as one of the automotive sector’s most substantial debt financings in the region.

This financial milestone is pivotal for the expansion of ACC’s gigafactories in France, Germany, and Italy, with the total investment requirement for these projects estimated to exceed seven billion euros. ACC’s CEO, Yann Vincent, expressed the financing as a testament to the banking sector’s strong confidence in ACC’s vision and direction.

The funds, secured with exclusive financial advice from BNP Paribas, are earmarked for the development of four new production units. These are in addition to ACC’s inaugural unit in Billy-Berclau/Douvrin, Pas-de-Calais, France, which commenced lithium-ion battery production at the end of 2023. Vincent announced that the first vehicles equipped with these batteries, primarily for Stellantis brand models, are expected to hit the market in 2024.

The expansion includes an additional facility in France, the first German gigafactory in Kaiserslautern, and a dual facility in Termoli, Italy. The financing involved a consortium of banks, including BNP Paribas, Deutsche Bank, ING, and Intesa Sanpaolo, and received backing from Bpifrance, Euler Hermes, and SACE.

This bank loan complements public funding already received or pending and will be further bolstered by capital contributions from ACC’s three shareholders, though the precise financial details remain undisclosed. Following these capital transactions, Stellantis will hold a 45% stake in ACC by the end of March, with Mercedes-Benz at 30% and Saft (a TotalEnergies subsidiary) at 25%, marking a shift from the previously equal one-third share distribution among the stakeholders. icon

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