@Groupe PSA: Total, Groupe PSA tie up to launch battery manufacturing plant for electric vehicles in Europe

Total, Groupe PSA tie up to launch battery manufacturing plant for electric vehicles in Europe

(PRESS RELEASE) PARIS, 31-Jan-2020 — /EuropaWire/ — Total, through its affiliate Saft, intends to establish a joint venture with Groupe PSA/Opel called the Automotive Cell Company (AAC). The joint venture will develop an electric vehicle (EV) battery manufacturing facility in Europe.

In a visit made by French President, Emmanuel Macron, in Saft Nersac plant in Nouvelle-Aquitaine region in France, the oil and gas company, Total, presented their plan to collaborate with Groupe PSA to develop a pilot plant to manufacture EV batteries.

Saft will provide its R&D for this project. Along with the project, the two companies will also construct a pilot plant in Saft’s Nersac facility. The plant is scheduled to start in mid-2021, which will generate 200 high skilled jobs in the said region.

The technology incorporated in the batteries will be of high efficiency, in terms of range and charging time. It also offers lower carbon footprint compared to others, which will set a new standard in Europe.

The first phase of the project will require an investment of 200 million euros to start a large-scale production plant in the northern Hauts-de-France region, initially with 8 GWh and rising to 24 GWh later on. The second production plant in Germany will also produce the same capacity to obtain 48-GWh of combined capacity by 2030. Both plants will produce around one million batteries a year, or about 10-15 percent of the European market. The project requires an estimate of 5 billion euros to be completed. This project aims to manufacture EV batteries by 2023.

“In 2015, Total set an ambition to become the responsible energy major. With that in mind, we acquired Saft, a major battery maker, in 2016, primarily to develop energy storage to support the growth of intermittent renewable energies such as solar and wind. The fast-growing development of electric mobility offers Total, via Saft, another opportunity for growth and commitment to a decarbonized economy. With the support of French, German and European authorities, we will deploy our best expertise and technologies alongside our partner Groupe PSA, to create a competitive European battery industry,” commented Patrick Pouyanné, Chairman and Chief Executive Officer of Total.

“Our purpose is to offer citizens mobility options that are clean, safe and affordable. I am convinced that this project, with our partner Total/Saft, will create a benchmark player in automotive battery cell development and production in Europe. I would like to thank the French and German authorities, the Nouvelle-Aquitaine and Hauts-de-France regions and Rhineland-Palatinate state for their active support, which is decisive in the creation of a competitive business backed by Total and its affiliate Saft, Groupe PSA and Opel,” said Carlos Tavares, Chairman of the Managing Board of Groupe PSA.

For this project, Total and Groupe PSA recognize the support of French, German, and European Union authorities. The two companies expected to receive about 1.3 Billion euros in public funding during the development of the project in the frame of the Important Projects of Common European Interest (IPCEI) initiative authorized by the European Commission.

During the pilot production, Saft and Groupe PSA will have a 50-50 equal shares in AAC joint venture and for the commercial production phase, Saft’s share will decline to 33 percent.

Saft is a French-based company specializing in advanced technology battery solutions. For 100 years, the company has designed their longer-lasting batteries and systems to have critical safety applications, back-up power and propulsion for its customers. It also made its batteries reliable in harsh environments like the Arctic Circles and the Sahara Desert. Saft is also powering other industry and smart cities. Saft is a wholly-owned subsidiary of Total.