Materials technology and recycling group Umicore and the Automotive Cells Company (ACC) battery cell joint venture between Stellantis, Total and Mercedes-Benz have signed a long-term supply agreement for cathode materials in Europe.
Umicore will supply high nickel cathode materials for ACC’s future European battery factories from its production facility in Nysa, Poland. The supply is scheduled to start in early 2024, according to Umicore.
According to the statement, the long-term agreement starts with an annual purchase commitment of 13 GWh “to a major platform of a European automotive manufacturer”. This platform is not specified in more detail. Since Mercedes-Benz joined ACC later, it is likely that the first deliveries will be used for Stellantis and the new STLA platforms. However, this has not been confirmed.
The supply agreement now concluded complements the previously agreed partnership between the two companies for battery recycling. In addition, ACC and Umicore directly state that they want to further expand the partnership and supply volumes. By 2030, the volume is expected to increase to up to 46 GWh, enough for at least 500,000 electric vehicles per year.
“We are very pleased to partner with ACC by enabling the fast transition to electric driving,” said Umicore CEO Mathias Miedreich. “Our long-standing track record in developing high-performance battery materials with industry benchmark quality levels, together with our sustainability leadership and closed-loop approach make us a preferred partner for our customers globally.”
Yann Vincent, CEO of ACC, added: “With this important agreement, which secures the supply of a key component for the battery industry, ACC confirms its ambition to become a European leader for car batteries that allow clean and efficient mobility for all.”
ACC is currently building two battery factories in Douvrin, France and Kaiserslautern, Germany. The company’s third factory is to be built at Fiat’s Termoli plant in Italy. All three battery factories are designed to have a final capacity of 40 GWh, reaching the target production capacity of 120 GWh.
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