«We've been offering help for two years»: ACC / Stellantis battery plant in difficulty, in talks with a Chinese giant to be saved

Just a few years ago, ACC embodied Europe's ambition to rival the Asian battery giants. Supported by Stellantis, Mercedes-Benz and TotalEnergies, the joint venture was to enable Europe to master a technology that had become strategic for the electric car. But by 2026, the rhetoric had changed. After industrial difficulties, the abandonment of gigafactory projects in Italy and Germany, and the refocusing on the single French site at Billy-Berclau-Douvrin, ACC was now looking for help precisely where it did not want to depend: in China.

According to information revealed in recent days by Les Echos and Le Monde, discussions are underway with several Chinese players in the sector, including world leader CATL.

From European champion to company under pressure

Barely a month ago, we were already talking about ACC's difficulties across the globe. a testimonial from an executive who left the company to return to Stellantis in Termoli, after the Italian gigafactory project was abandoned.

Since then, the signals have multiplied. Despite a change in management at the beginning of May, with the arrival of a former Panasonic executive, ramping up production at the French plant remains complicated. The main problem remains the same: producing enough quality batteries at a competitive cost.

ACC has opted for the technology of NMC (Nickel-Manganese-Cobalt) cells, reputed for their performance but costly to manufacture. Meanwhile, carmakers are increasingly turning to LFP (Lithium Iron Phosphate) batteries, which are less expensive and now largely mastered by Chinese manufacturers. This market trend puts ACC in a tricky position. According to Le Monde, all European companies in the sector are now facing the same reality: they need Chinese know-how to take their industry to the next level.

CATL, BYD: several avenues being explored

According to Les Echos, ACC has been in discussions with various potential partners for several months. Several scenarios are being studied, ranging from technology licensing agreements to an equity investment.

The names of BYD and above all CATL come up regularly in discussions. The world's leading battery manufacturer already works closely with Stellantis. The two groups are currently building an LFP battery plant in Zaragoza, Spain, and are also collaborating on next-generation technologies for the automaker's future vehicles.

Interviewed by Le Monde, Emanuele Cappellano, Managing Director of Stellantis Europe, did not deny the existence of discussions with CATL. For its part, the Chinese group admits to regular exchanges with Stellantis, while asserting that it is not interested at this stage in ACC's current assets. Officially, therefore, nothing has been decided. But several recent statements suggest that a rapprochement with a Chinese player is no longer a taboo subject.

«It's been two years since we offered help».»

The sentence reported by Les Echos perfectly sums up the shift in the balance of power currently taking place in the battery industry. «We've been offering to help for two years now,» explains a Chinese player to the business newspaper.

For a long time, he believes, European groups found it too costly to gain access to technologies developed in China. But the situation has changed. After several years of massive investment in research and development, Chinese manufacturers now have a considerable lead in industrial processes, production yields and LFP technologies.

At ACC, some observers recognize that Chinese help should perhaps have been sought earlier. The joint venture is already working with the Chinese group EVE, whose engineers are currently accompanying the French teams to improve industrial processes. Even Patrick Pouyanné, CEO of TotalEnergies, recently publicly raised the idea of «putting a bit of Chinese technology into ACC to help them get out of their rut».

Stellantis in favor of a partner?

According to Les Echos, the idea of welcoming a new player into ACC's capital is not only supported by the joint venture's management. The shareholders themselves - Stellantis, Mercedes-Benz and TotalEnergies - would welcome the arrival of a partner capable of providing both funds and technological expertise.

For Stellantis, the stakes are particularly high. ACC's industrial difficulties have already had a tangible impact on production lead times for some of the Group's electric models. Quality problems and a high scrap rate have slowed down the ramp-up of the French plant. The arrival of a player like CATL could accelerate the improvement of industrial processes, while paving the way for an eventual transition to LFP technology, now a must on the European market.

A development that would have been unthinkable five years ago

The irony of the situation is not lost on anyone. ACC was created precisely to reduce Europe's dependence on Asian manufacturers. More than 1.3 billion euros in French and German public aid were mobilized to support the project. However, faced with the difficulties encountered by the European industry, of which the bankruptcy of the Swedish company Northvolt remains the most striking symbol, the lines are moving fast.

In Brussels as in Paris, a partnership with a Chinese manufacturer is no longer necessarily perceived as a failure. On the contrary, several officials now consider that a technology transfer that keeps jobs and production in Europe could be a pragmatic solution. It remains to be seen what form this possible alliance will take. Simple technical assistance, a licensing agreement, a shareholding or a more in-depth strategic partnership: no option seems to be ruled out at present.