ACC's European Gigafactory Expansion: Progress in France, Uncertainty in Germany
ACC's expansion plans for its European gigafactories have seen progress and setbacks. The company has opened its first gigafactory in France and plans to double its production capacity there by 2026. Meanwhile, the status of the German gigafactory in Kaiserslautern remains unclear, with GGSC involved in supporting its establishment.
ACC's first gigafactory, opened in Billy-Berclau, France in June 2022, has a capacity of 13GWh. The company plans to double this capacity by 2026 through a partnership with Equans France. This expansion is part of ACC's strategy to control production, reduce environmental impact, and consolidate the European automotive industry.
ACC had planned three factories in France, Germany, and Italy. The French gigafactory was built in 17 months at a cost of €800m ($865m). The Italian gigafactory in Termoli was set to produce 40GWh annually. However, ACC paused plans for the German and Italian facilities due to considering a shift to lithium iron phosphate (LFP) batteries.
The German gigafactory in Kaiserslautern was initially planned to begin production in 2025 with an initial capacity of 13.4GWh, eventually rising to 40GWh. The current status of this project is not explicitly detailed in recent reports, but GGSC is involved in supporting its establishment through various legal and procedural services.
To fund the construction of the three European factories, ACC raised €4.4 billion ($4.7 billion) in debt funding. PSA BDP has also opened a 22,000sq.m warehouse in Dunkirk, France to provide specialist services for electric vehicle (EV) battery logistics, including for ACC.
ACC's gigafactory expansion plans have seen significant progress in France, with further growth planned. However, the future of the German and Italian facilities remains uncertain due to ACC's consideration of LFP batteries. The status of the Kaiserslautern gigafactory is currently unclear, with GGSC supporting its establishment. Despite these uncertainties, ACC's commitment to expanding its European production capacity is evident.
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