Automotive Cells Company (ACC) announced Monday the closing of a €4.4 billion ($4.74 billion) debt raising to support the expansion and construction of its planned gigafactories in France, Germany and Italy.

The European battery joint venture between Stellantis, Mercedes-Benz and Saft, a subsidiary of TotalEnergies, says the deal is one of Europe’s largest-ever debt raisings in the industry. Proceeds will be used to fund the construction of four production blocks – a new one in France, one in Germany and two in Italy. Funds will also be used to support research and development activities.

ACC started producing its first cells in December 2023 at its Billy-Berclau Douvrin gigafactory in France, at an annual capacity of 13 gigawatt-hours. Construction of a second production block will now start, before launching the construction in the German and Italian projects. The latter will be built in Rhineland-Palatinate and Molise, respectively.

The company is targeting the production of over 2 million lithium-ion batteries a year by 2030, which it says corresponds to 120 GWh of capacity. For that, a €7 billion total investment is estimated.

“With this world-class financial community supporting us, we see clear evidence of the confidence that is placed in the ACC project,” comments ACC chief executive Yann Vincent. “Beyond this operation, we will determine our needs as and when we conclude additional contracts. We are resolutely looking to the future, with a view to achieving our objective of growing our production capacities.”

The debt package secured by ACC is fully underwritten by a consortium of commercial banks – BNP Paribas, Deutsche Bank, ING, Intesa Sanpaolo – and supported by Bpifrance, Euler Hermes, and SACE.

In addition, partners Stellantis and Mercedes-Benz decided to participate in a new fundraising, increasing their capital injection and ownership in the JV. By the end of March, the shareholding structure will be 45% Stellantis, 30% Mercedes-Benz and 25% Saft. The JV was set up in 2022 with each partner owning one-third of its capital.

However, the carmakers are now confirming their commitment to be “leading shareholders and customers” of ACC battery modules. Saft, meanwhile, will continue as a long-term shareholder in ACC and will support its growth with technological know-how.

ACC did not disclose financial details of the next capital injection.