Automotive Cells Co Explores Battery Manufacturing Plant in North America Amid Growing EV Market

Automotive Cells Co (ACC), a joint venture between Stellantis, Total Energies, and Mercedes-Benz Group, has initiated discussions with officials from Canada and the United States regarding the establishment of a battery manufacturing plant in North America. ACC’s spokesperson confirmed the exploratory talks to Reuters on Tuesday.

In May of this year, ACC representatives met with officials from the Quebec government in Canada, as well as with representatives from the mayor’s office in the city of Mirabel, Quebec, and federal government representatives, as per the provincial and federal government lobby registry.

The discussions centred around inquiries related to potential direct funding, incentives, and grants for the site selection, development, and construction of a new battery processing facility in Quebec, according to publicly available documents.

An ACC spokesperson clarified that these were preliminary exploratory studies, and the company’s primary focus remains on executing its ambitious European industrial and technological roadmap.

While Canadian government officials were not available for immediate comments, officials from Invest Quebec chose not to comment on the matter.

Although ACC has revealed its plans to explore opportunities in North America, no specific details regarding talks held in the United States have been disclosed.

According to information in the federal and provincial government lobby registry, the discussions appear to have concluded. However, a source familiar with ACC’s perspective asserted that the talks are still ongoing, though they might be complicated due to recent events involving Stellantis, LG, and the Canadian government.

It’s worth noting that last month, Stellantis reached a resolution with the Canadian government over subsidies for an electric vehicle (EV) plant in collaboration with South Korean LG Energy Solution, with incentives potentially amounting to C$15 billion ($11 billion).

ACC, launched in 2020, has already announced investments of 7 billion euros ($7.7 billion) in electric-vehicle battery plants across Germany, France, and Italy.

As the global automotive industry and EV battery manufacturers increasingly eye the North American market, both the Canadian and U.S. governments have been offering incentives to attract new manufacturing plants. This strategic move is aimed at reducing dependence on China for critical minerals.

In the case of Quebec, the provincial government’s proximity to U.S. port cities could be advantageous in attracting investments in the EV battery sector. Consequently, the government has been actively supporting lithium explorers and battery manufacturers in the region. The evolving landscape in North America is likely to draw further attention from major players seeking to expand their foothold in the rapidly growing EV market.

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