Our first story is about ACC, who has recently announced a closure on the raising of €4.4 billion, together with its shareholders Stellantis, Mercedez-Benz and Saft. In addition to the gigafactory currently in operation in Billy-Berclau, France, the funding will be utilised to develop another four blocks of production at this location. An additional production block will also be added to the facility in Douvrin, with two more production blocks in Italy and a facility expansion in Germany as well. Yann Vincent, the CEO of ACC stated, “With this world-class financial community supporting us, we see clear evidence of the confidence that is placed in the ACC project. 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.”
For our second story, The Tata Group has selected Somerset, in the southwest of England, for its inaugural battery cell plant outside of India. Named the "Gravity Smart Campus", this facility will be established near Bridgewater, as revealed by Agratas, Tata's battery division. The British government had previously disclosed in July 2023 that Tata would be constructing a factory within the UK. This factory is set to boast an annual production capability of 40GWh and is expected to generate approximately 4,000 local jobs. With an investment nearing €5 billion, production at this gigafactory is slated to commence in 2026, though groundwork has already started, with plans to lay the first foundations in the spring of 2024. This significant investment promises to introduce advanced technology to Somerset and aid the UK in its shift towards electric vehicles.
For our third story, LG Chem has entered into a significant supply agreement with General Motors (GM) to provide cathode materials, a deal valued at approximately €17.5 billion. This contract, set to span from 2026 to 2035, will see LG Chem delivering over 500,000 tons of cathode material to GM. This arrangement follows a broader agreement made in July 2022, where the two companies committed to a long-term supply of cathode materials, with the current contract detailing a portion of the previously agreed-upon volume. The commencement of deliveries in 2026 is timed to align with the start of operations at LG Chem's new cathode material manufacturing facility in Tennessee, USA. Initiated in December 2023, this plant is being constructed with the capability to produce 60,000 tons annually. LG Chem anticipates that the NCMA cathode material produced at this Tennessee facility will be primarily used by Ultium Cells, the joint venture between LG Energy Solution and GM. Nonetheless, given that this is a direct agreement with GM, the supplied materials might also find application across GM's various electric vehicle initiatives.
For our last story, Tesla is reportedly looking to bolster its battery manufacturing capabilities in Nevada, USA by setting up a new plant equipped with machinery from CATL. As per a Bloomberg report, Tesla is anticipated to finance the equipment purchase and bear all related expenses, while CATL will provide assistance during the setup phase. The plant's initial production capacity is expected to cap at about 10GWh annually, with prospects for expansion contingent on the initial phase's success and the establishment of a robust supply chain. The start of operations is targeted for 2025. To date, there has been no official statement from either Tesla or CATL regarding this project.
These were the biggest updates from the process industry across Europe and the U.S. If you enjoyed the video please give it a like, comment, and share. If you have an advanced engineering project coming up, CMC provides engineering, construction, and project management services to help you deliver your project ahead of schedule and under budget. For more information visit www.expertisedelivered.com or reach out to me directly on LinkedIn. Thank you for watching. I’m Cain van Heyningen, this has been Work In Process, and I hope to see you again next month.