Energy giant Total and automotive group Fiat Chrysler Automobiles (FCA) have launched a new joint venture responsible for building two lithium-ion battery gigafactories with a cumulative capacity of 48GWh by 2030.
The facilities will represent one million electric vehicles (EVs) produced per year, which is more than 10% of the existing European market.
The two plants will be located in France and Germany and will start operations in 2o23, with a capacity of 8GWh.
The total investment for the entire project, which will be managed by the new company Automotive Cells Company (ACC), is estimated at €5 billion (£4.4bn).
Patrick Pouyanné, Chairman of Total, commented: “The creation of ACC illustrates Total’s commitment to meet the challenge of climate change and to develop as a broad energy company, a major player in the energy transition, by continuing to provide affordable, reliable, and cleaner energy.”
Carlos Tavares, Chairman of Groupe PSA, said: “This new step is consistent with our central purpose to offer citizens clean, safe and affordable mobility and gives Groupe PSA a competitive advantage in the context of growing sales of EVs”.