European battery cell manufacturer ACC (Automotive Cells Company) announced today that it has raised €4.4 billion (USD$4.7 billion) in debt financing, aimed at supporting the construction of three gigafactories for lithium-ion battery cell production in France, Germany, and Italy.

ACC was founded in 2020 as a joint venture by Stellantis and TotalEnergies – with Mercedes-Benz joining the JV in 2021 – and supported by the French, German and European authorities in order to create a European battery champion for electric vehicles. The company aims to develop and produce battery cells and modules for EVs with a focus on safety and performance, while ensuring the lowest carbon footprint.

The company inaugurated its first gigafactory in France in 2023, which is currently producing batteries for Stellantis, and plans a series of developments to meet demand, including constructing a second block on the French site, in addition to plants in Germany and Italy. ACC has set a goal to reach at least 120 gigawatt hours of cell capacity by 2030.

Yann Vincent, Chief Executive Officer of ACC said:

“The transition to the electrification of vehicles is still on the way. To meet this immense challenge, our customers must be able to rely on robust and reliable European players like ACC, capable of delivering high volumes of competitive batteries with a low CO2 footprint.”

The announcement marks the latest in a series of large-scale capital raises for a growing battery manufacturing gigafactory ecosystem to support the transition to electric vehicles in Europe, including a $5 billion green loan completed in January for battery manufacturer Northvolt for its Northern Sweden-based lithium-ion battery gigafactory and battery recycling facility.

The debt package was underwritten by a consortium of commercial banks including BNP Paribas, Deutsche Bank, ING, Intesa Sanpaolo, and supported by Bpifrance, Euler Hermes, and SACE.

David Lynne, Head of the Corporate Bank and Deutsche Bank, said:

“This deal represents a big milestone for Deutsche Bank and our Corporate Bank. It showcases how we support the transformation of the European economy across countries and, at the same time, one of the most important industries for Germany. It also demonstrates our strategic focus on structuring and facilitation the energy transition. We are delighted to be part of this transaction and I would like to congratulate everyone involved for setting this important signal for the European, and also German, economy.”