ACC in Talks to Build North American Battery Plant, Challenging China's Dominance

The negotiations are still ongoing.

An ACC representative said that the French company Automotive Cells Co (ACC) is in preliminary discussions with government representatives in Canada and the United States about establishing a battery manufacturing facility in the region. Stellantis, Total Energies, and Mercedes-Benz Group are partners in the ACC joint venture.

According to the provincial and federal government lobby registry, its representatives met with members of the Quebec government in Canada, the mayor's office in the city of Mirabel in Quebec, and the federal government in the territory in May of this year, as reported by Reuters.

According to publicly available papers, the lobbying attempts were made to find out about direct funding, incentives, and grants connected to site selection, development, and construction of a new battery processing factory in the province of Quebec.

Negotiations Are Still Ongoing

Although ACC indicated it was looking into plans for North America, it provided little information on the discussions it has had in the US.

The talks have come to an end, according to the lobby registry for the federal and provincial governments. The negotiations are still ongoing, but they "may be complicated in light of what happened between Stellantis and LG and the Canadian government."

CANADA-ENVIRONMENT-AUTOMOBILE-INNOVATION-DISCOVERY
An employee works on the chassis of an electric truck at the Lion Electric plant in Saint-Jérôme, Quebec, on March 15, 2023. - As the world races to transition to emissions-free driving, Canada is making a big push into batteries for electric vehicles -- touting tax incentives, as well as bountiful cricital minerals and clean energy to attract multinationals. by DERRICK CAKPO/AFP via Getty Images

Last month, Stellantis and the Canadian government came to an agreement over the project's eligibility for incentives of C$15 billion ($11 billion) to build an EV plant with the help of its South Korean LG Energy Solution.

ACC, which was founded in 2020, has revealed plans to invest $7.7 billion in electric vehicle battery installations in Germany, France, and Italy.

Read also: GM, Samsung Invest $3 Billion in US EV Battery Plant

Reducing Dependency on China for Crucial Minerals

As the Canadian and American governments offer incentives to manufacturers in an effort to reduce their dependency on China for crucial minerals, international automakers and producers of EV batteries have been eyeing the North American market to set up new manufacturing facilities.

The Quebec provincial government in Canada is attempting to attract investments in the EV battery market to its province by using its close proximity to U.S. port towns. Government support has been provided to lithium explorers and battery producers.

China's Dominance in EV Batteries

China is the world leader in the EV battery industry, producing over half of the world's lithium-ion batteries.

China began investing in the EV battery industry in the early 2000s, providing subsidies and other incentives to domestic companies. This gave Chinese companies a head start over their global rivals.

It is also home to some of the world's largest reserves of lithium, cobalt, and other minerals that are essential for EV batteries. This gives Chinese companies a cost advantage over their global rivals.

As a result of these factors, China is now the world leader in EV battery technology. Chinese companies have developed some of the most advanced EV battery technologies, and they are continuing to invest in research and development. This gives China a significant advantage in the global EV battery market.

Related article:  

Real Time Analytics