Saft, an affiliate of Total, and PSA with Opel, have revealed their plans to collaborate and create a joint venture called Automotive Cell Company (ACC) to develop electric vehicle battery manufacturing activity in Europe.
The project will utilize advanced research and development, primarily from Saft, to manufacture high-performance EV batteries beginning in 2023. This technology will have a better range and charging time, and a lower carbon footprint than competitors, setting a new standard in Europe.
The first phase of the project will concentrate on R&D and will involve constructing a pilot plant on the premises of Saft’s Nersac facility, which will begin operations in mid-2021. This phase is expected to create around 200 high-skilled jobs in the Nouvelle-Aquitaine region of France, to develop, qualify, and scale up high-performance lithium-ion batteries.
This first phase will lead to the investment decision for a larger production plant (initially 8 GWh, eventually expanding to 24 GWh) in the northern Hauts-de-France region, followed by another plant of equal capacity in Germany, with a total combined capacity of 48 GWh by 2030. This will produce one million batteries per year, equivalent to 10-15% of the European market. The project will cost almost €5 billion to complete.
Total and Groupe PSA express gratitude to the French, German, and European Union authorities for supporting the project, with nearly €1.3 billion in public funding expected to be provided through the Important Projects of Common European Interest (IPCEI) initiative authorized by the European Commission.
“In 2015, Total set an ambition to become the responsible energy major. With that in mind, we acquired Saft, a major battery maker, in 2016, primarily to develop energy storage to support the growth of intermittent renewable energies such as solar and wind. The fast-growing development of electric mobility offers Total, via Saft, another opportunity for growth and commitment to a decarbonized economy,” said Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “With the support of French, German and European authorities, we will deploy our best expertise and technologies alongside our partner Groupe PSA, to create a competitive European battery industry.”
Carlos Tavares, Chairman of the Managing Board of Groupe PSA added: “Our purpose is to offer citizens mobility options that are clean, safe and affordable. I am convinced that this project, with our partner Total/Saft, will create a benchmark player in automotive battery cell development and production in Europe. I would like to thank the French and German authorities, the Nouvelle-Aquitaine and Hauts-de-France regions and Rhineland-Palatinate state for their active support, which is decisive in the creation of a competitive business backed by Total and its affiliate Saft, Groupe PSA and Opel.”
The Automotive Cell Company (ACC) will be a 50-50 Saft and Groupe PSA/Opel joint venture for the pilot production line. During the commercial production phase, Saft’s share in ACC will decline to 33%.
European context
In 2019, the European Union set ambitious, binding targets to quickly expand the sale of electric vehicles. The European market for automotive batteries is estimated to reach around 400 GWh in 2030, or 15 times current needs, corresponding to more than seven million electric vehicles.
European automakers therefore need to plan their battery supply strategy, since batteries represent more than a third of an electric vehicle’s added value.
The project’s implementation is contingent on securing the approvals of the relevant antitrust authorities.
