Europe’s battery problems seem to be endless. Just days after the Swedish battery cell manufacturer Northvolt filed for bankruptcy, it was the turn of another European company, ACC, which also specializes in battery cells.
ACC (Automotive Cells Company), a subsidiary of Stellantis, Mercedes, and TotalEnergies, began operations in 2023. At the end of May, battery production lines began operating in northern France.
The company’s next goal after production began was to expand and establish another factory, originally planned for Italy, to produce electric vehicle batteries for the manufacturing lines of supporting companies such as Stellantis.
However, according to ACC officials, things are not progressing as quickly as hoped, with production obstacles in a factory that lacks competitiveness compared to Chinese manufacturers.
The production problems have made the company uncompetitive, leading to a decline in sales. ACC officials explained that they have decided to suspend some projects in the face of slowing demand for electric vehicles.
The bankruptcy of Northvolt, one of Europe’s largest battery manufacturers, is enough to scare other companies seeking to produce batteries in Europe. Reports indicate that Europe is unable to compete with China in the electric vehicle market.
The primary reason is always the low sales, which is due to several factors, the most important of which is the high price, which is considered high compared to Chinese electric vehicles.
To avoid the same fate as Northvolt, the ACC president is requesting financial assistance from France and Europe, which have already agreed to a plan worth more than one and a half billion euros in aid for battery manufacturers. However, this may not be enough, given that Northvolt alone has accumulated debts exceeding $8 billion in a very short period.
The financial problems and declining sales suffered by most European automakers are causing them to fall in the overall sales rankings and costing them many markets. Traditional European car markets have shifted to markets for Chinese electric and non-electric vehicles.
The threat has even reached Europe itself, where European citizens have begun to prefer buying advanced, modern, and inexpensive Chinese cars over expensive European ones with limited technology.
