German auto giants Mercedes-Benz and Volkswagen accelerate battery production plans
Daimler secures 33 percent stake in Automotive Cells Company alongside Stellantis and TotalEnergies, and JAC Volkswagen announces construction of additional battery factory in Hefei, China.
Following news this week that Ford has partnered with Redwood Materials to secure future battery component supply chains, we have an announcement from Daimler that Mercedes-Benz has secured a 33 percent stake in Automotive Cells Company (ACC), a battery cell manufacturer with a presence in France. The stake is estimated to be worth around $1.2 billion USD ($1.65 billion AUD).
Stellantis and French petroleum company TotalEnergies own 33 percent each. Automotive News Europe reports Mercedes-Benz CEO Ola Kaellenius has said “the purpose of the partnership is to develop cells and battery modules and “help ensure that Europe remains at the heart of the auto industry — even in an electric era.”
Mercedes-Benz will provide technology and production expertise to the ACC partnership, and aims to manufacture at least 120 Gigawatt hours of cell capacity by the end of the decade with its partners. The company is moving towards a modular, standardised battery “kit” that allows battery cells and modules from different manufacturers to easily fit with its range of components and interfaces.
High energy density, performance and charging power are key benchmarks for the project according to Daimler. ACC will primarily use renewable energy for its production facilities, and the batteries themselves will be over 95 percent recyclable.
ACC’s first new factory will be located in Northern France, and plans to be operational by 2023.
A rendering of JAC Volkswagen’s Hefei battery production facility. Image: Volkswagen
Volkswagen powers ahead in China
Meanwhile, Chinese joint venture Jianghuai Automobile Group/Volkswagen (JAC Volkswagen) will also have a new battery factory operational by 2023, located in Hefei city. Automotive News Europe states that the factory's initial capacity will be 150,000 to 180,000 battery systems a year.
This is the fourth battery factory in the works for the Wolfsburg automaker, with plants in Brunswick and Salzgitter Germany coming online in the next couple of years. A battery factory in Chattanooga, TN and at Volkswagen technology partner Northvolt’s Skellefteå plant should also be operational by 2023. Volkswagen plans to produce unified, modular cells like Mercedes-Benz for its scalable MEB platform architecture, and has flagged an annual capacity of up to 180,000 battery systems from its Hefei plant.
“With a significant increase of battery-electric vehicles in the future, we need to focus on keeping key components like battery systems in our own value chain, allowing us to leverage Group-wide synergies and innovations” says Stephan Wöllenstein, CEO of Volkswagen Group China. He goes on to say that “Volkswagen Anhui and VW Anhui Components Company, alongside our two strong Joint Ventures, are crucial to our electrification strategy and to achieving our goal of the Volkswagen Group China fleet reaching over 40% NEVs by 2030”.
Sources: Daimler, Automotive News Europe
Chinese automaker NIO plans NeoPark, an EV Industry Park in Hefei with $7.7 billion US initial investment
NIO’s founder, chairman and CEO William Li announced plans this week for a new smart electric vehicle industry park in conjunction with the Hefei municipal government at Xinquao, Hefei, Anhui province, about 5 hours west of Shanghai.
A concept rendering of NeoPark in Hefei, Anhui. Image: NIO
Hefei lies about 5 hours drive from Shanghai. Image: Google Maps
NIO’s founder, chairman and CEO William Li announced plans this week for a new smart electric vehicle industry park in conjunction with the Hefei municipal government at Xinquao, Hefei, Anhui province, about 5 hours west of Shanghai.
In a ceremony with Chinese government officials, NIO announced that it will be the first major manufacturer to be based within this world-class EV industry cluster, designed as a mega campus to house everything the EV manufacturing industry needs. The automaker has also committed 50 billion RMB ($7.7 billion US) to the initial stages of planning and construction.
NeoPark will be a hub for research and development, design, autonomy as well as parts and components manufacturing, and the concept allows for hundreds of key supporting enterprises to be able to function as an industry cluster within the park.
At 16,950 acres (over 11 square kilometers), the campus of NeoPark will contain manufacturing areas, research and development areas, living space, and an eco-park. It’s estimated that over 50,000 workers will be able to live/stay on campus at any one time, and Hefei plans to support the industry by providing policy support and funding, which, in turn, should attract more EV chain businesses and talent.
A NIO showroom within NeoPark rendered for the presentation.
NeoPark is launch before Chinese media.
Hefei will increase its support for the smart electric vehicle industry through funding, favourable policy and construction. NIO will be heavily involved in the long-term development planning of the park, and will introduce more EV chain businesses through establishing an R&D, corporate and manufacturing presence there.
NeoPark claims green credentials too, though the media event didn’t highlight any specifics at this stage.
NeoPark has the potential to realise an annual production capacity of 1 million vehicles and 100 GWh of battery storage according to NIO, and the campus gross yearly output could reach RMB 500 billion ($77.23 billion US).
Nio executives at the launch of NeoPark.
