PSA and Total to build batteries together
Automotive group PSA Group and energy group Total have signed an agreement for the creation of a joint venture called Automotive Cells Company. ACC is to become a world-class player in the development and manufacture of high-performance batteries for the automotive industry from 2023.
Through its subsidiary Saft, Total will contribute its expertise in R&D and industrialization, while Groupe PSA brings its knowledge of the automotive market and its experience in production to the table. The R&D centre in Bordeaux and the pilot site in Nersac (France) have already started in order to develop the new high-performance lithium-ion technologies. At the end of this R&D phase, production is planned to be launched in two "gigafactories", in Douvrin (France) and Kaiserslautern (Germany).
The project is backed with €1.3 billion in financial support of French and German public authorities. It received the European institutions’ agreement through an IPCEI project that testifies to the strategic importance of mobility for the energy transition. The whole project will absorb an investment of more than €5 billion.
The project is deemed essential to accompany the growth demand for electric vehicles in a European market estimated at 400 GWh by 2030, i.e. 15 times the current market. It is also crucial to ensure industrial independence from today’s Asian suppliers. ACC will make batteries for both PSA group models and vehicles of competitors.
Photo credit: PSA, 2020