French battery manufacturer Automotive Cells Company (ACC) on Thursday welcomed the European Union’s new action plan for the automotive sector but warned that the proposed support measures may come too late to address the industry’s pressing challenges.
The European Commission on Wednesday announced a plan to help the sector transition to zero-emission vehicles by 2035, including €1.8 billion ($1.94 billion) in funding to strengthen battery supply chains.
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ACC, a joint venture between Stellantis, Mercedes-Benz, and TotalEnergies, acknowledged the initiative but stressed the need for urgent action. “Supporting our industry through a medium-term action plan is a positive step, but the urgency of the current situation must not be underestimated,” the company said in a LinkedIn post. “To survive and successfully ramp up our Gigafactory – a process that is proving longer and more expensive than expected – immediate support is essential.”
The company called for the swift activation of the EU’s 2024 Innovation Fund rather than delaying support until 2025 or later. It emphasized that the stakes go beyond its survival, highlighting three key concerns: decarbonizing transport, securing Europe’s strategic autonomy in battery production, and supporting regional reindustrialization in the transition to electric mobility.
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ACC has scaled back its expansion plans due to uncertainty over European EV demand and growing competition from lower-cost battery technologies. Originally planning nine production blocks across France, Germany, and Italy by 2030, backed by €7.3 billion in investment, the company has since put its German and Italian projects on hold. Currently, only one block in France is operational, with a second expected to start by the end of the year.
