Deutsche Bank Pledges €4.4 Billion for Tri-Nation Gigafactory Initiative to Fuel Electric Vehicle Surge

Automotive Cells Company (ACC) has successfully secured a €4.4 billion project financing package to bolster the development of three gigafactories dedicated to lithium-ion battery cell production across France, Germany, and Italy. Deutsche Bank emerges as a pivotal player in this financial endeavor, serving as Underwriter, Lender, and Hedging Bank alongside three other European financial institutions.

This strategic financial injection is aimed at enhancing ACC’s manufacturing capabilities, starting with its inaugural gigafactory in Billy-Berclau Douvrin, France, which began its battery module production for Stellantis in December 2023. The funding will also support the expansion within France, alongside new projects in Germany and Italy, as articulated by Yann Vincent, ACC’s CEO. Vincent emphasized the critical role of ACC and its European partners in meeting the burgeoning demand for EVs, highlighting the venture’s commitment to delivering competitive, low-carbon batteries at scale.

The involvement of Deutsche Bank in the financing marks a significant contribution towards its sustainable finance objectives, with a direct investment of €1.1 billion. This project not only underscores the bank’s dedication to facilitating the energy transition but also aligns with the European Union’s classification of the initiative as an Important Project of Common European Interest (IPCEI). It aims at accelerating ACC’s position as a leading force in the battery industry, essential for powering high-performance, eco-friendly electric vehicles.

This financing deal is noted for being the first of its magnitude globally within the nascent sector, placing Deutsche Bank at the forefront of facilitating significant advancements in EV infrastructure and sustainability. It reflects Deutsche Bank’s broader strategy to champion the transformation of Europe’s economy and critical industries through substantial project finance operations.

David Lynne, Head of the Corporate Bank at Deutsche Bank, lauded the transaction as a pivotal achievement for the bank and a testament to its strategic commitment to the energy transition. Lynne’s commendation extends to all parties involved in setting a robust foundation for economic growth and sustainable development within Europe and particularly in Germany, home to one of the world’s most vital automotive sectors.