ACC secures major financing for three gigafactories

ACC, a European auto battery manufacturer co-owned by Stellantis, Mercedes, and TotalEnergies, announced on Monday that it had completed a significant financing round for the development of three gigafactories in France, Germany, and Italy.

The company secured bank financing worth €4.4 billion ($4.74 billion), which constitutes a substantial part of its total estimated investment of just over €7 billion. This financing represents one of the largest debt fundraising operations in the European automotive sector.

BNP Paribas served as ACC’s sole financial advisor, as the financing agreements were made with a bank consortium including Deutsche Bank, ING, Intesa Sanpaolo, Bpifrance, Euler Hermes, and SACE.

This funding will support the construction of four new ACC production lines: an additional one in France, a new one in Kaiserslautern, Germany, and two in Termoli, Italy. These new lines will join ACC’s first lithium-ion battery production unit in Billy-Berclau, northern France, which opened last year.

The financing, which supplements already granted or committed public subsidies, will receive further cash contributions from ACC’s three shareholders, the company added.

As a result, by the end of March, Stellantis will have a 45 per cent stake in ACC, Mercedes-Benz will own 30 per cent, and Saft, a subsidiary of TotalEnergies, will hold 25 per cent.