Groupe PSA has entered into a partnership with Total to start a new venture, Automotive Cells Company, for manufacturing batteries.
(PSA Media Center)
Soumen's key takeaways:
- The COVID-19 pandemic has accelerated the plans to build a local supply chain to mitigate risks from a globalised supply chain. This venture will help the EU region in having enough battery capacity to meet the growing demand from EVs.
- With oil reservoirs depleting and global sentiments against polluting fuels, Total is looking for an alternative business. It had already entered the EV charging infrastructure business.
- This investment in battery production will help Total create an integrated business infrastructure.
- With its focus on EVs, Groupe PSA also needs to focus on developing high-performance Li-ion batteries.