Launch of Pilot Plant to Manufacture European Batteries for Electric Vehicles

During French President Emmanuel Macron’s visit to the Saft Nersac plant near Angoulême, in the Nouvelle-Aquitaine region, Total, through its affiliate Saft, and PSA with Opel, are announcing their plan to combine their know-how to develop EV battery manufacturing activity in Europe. To that end, the partners intend to establish a joint venture named Automotive Cell Company (ACC).

Automotive Cell Company (ACC) plant

Project will leverage cutting-edge R&D, notably provided by Saft, in order to produce EV batteries starting in 2023. Technology used will offer the highest level of energy performance, both in terms of range and charging time, and a lower carbon footprint than that of the competition, setting a new standard in Europe.

First phase of the project focuses on R&D, including building a pilot plant on the land of Saft’s Nersac facility. Plant is scheduled to start up in mid-2021 and represents an investment of 200 million euro. Project will generate around 200 high-skilledjobs in France’s Nouvelle-Aquitaine region to develop, qualify and commercially scale up new, high-performance lithium-ion batteries.  

First phase will trigger the investment decision for a large-scale production plant (8 GWh initially, rising to 24 GWh later on) in the northern Hauts-de-France region, followed by a second one of equal capacity in Germany, in order to reach 48 GWh of combined capacity by 2030. That would represent production of one million batteries a year, or around 10-15% of the European market. Ultimately, nearly €5 billion will be required to complete this ambitious program.

Total and Groupe PSA acknowledge the support of French, German and European Union authorities for the project, expected to receive nearly €1.3 billion in public funding during its development in the frame of the Important Projects of Common European Interest (IPCEI) initiative authorized by the European Commission.

“In 2015, Total set an ambition to become the responsible energy major. With that in mind, we acquired Saft, a major battery maker, in 2016, primarily to develop energy storage to support the growth of intermittent renewable energies such as solar and wind. The fast-growing development of electric mobility offers Total, via Saft, another opportunity for growth and commitment to a decarbonized economy,” said Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “With the support of French, German and European authorities, we will deploy our best expertise and technologies alongside our partner Groupe PSA, to create a competitive European battery industry.” 

Carlos Tavares, Chairman of the Managing Board of Groupe PSA added: “Our purpose is to offer citizens mobility options that are clean, safe and affordable. I am convinced that this project, with our partner Total/Saft, will create a benchmark player in automotive battery cell development and production in Europe. I would like to thank the French and German authorities, the Nouvelle-Aquitaine and Hauts-de-France regions and Rhineland-Palatinate state for their active support, which is decisive in the creation of a competitive business backed by Total and its affiliate Saft, Groupe PSA and Opel.” 

Automotive Cell Company (ACC) will be a 50-50 Saft and Groupe PSA/Opel joint venture for the pilot production line. During the commercial production phase, Saft’s share in ACC will decline to 33%.

European context

In 2019, European Union set ambitious, binding targets to quickly expand the sale of electric vehicles. European market for automotive batteries is estimated to reach around 400 GWh in 2030, or 15 times current needs, corresponding to more than seven million electric vehicles. European automakers therefore need to plan their battery supply strategy, since batteries represent more than a third of an electric vehicle’s added value.  

Project’s implementation is contingent on securing the approvals of the relevant antitrust authorities. 

About Total

Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.

About Saft

Saft specializes in advanced technology battery solutions for industry, from design and development to production, customization and service provision. For 100 years, Saft’s longer-lasting batteries and systems have provided critical safety applications, back-up power and propulsion for our customers. Our innovative, safe and reliable technology delivers high performance on land, at sea, in the air and in space. Saft is powering industry and smarter cities, while providing critical back-up functionality in remote and harsh environments from the Arctic Circle to the Sahara Desert. Saft is a wholly-owned subsidiary of Total, a major energy player that produces and markets fuels, natural gas and low-carbon electricity.

Groupe PSA: Worldwide sales at 3.5M units in 2019

• Electrification on track: 10 [1] new models launched as a first milestone toward a 100% electrified range by 2025
• Solid position in Europe: 16.8% market share
• International businesses focused on profitable growth and manufacturing footprint development

“In all regions, our teams are driven by a strong commitment to performance, profitable sales and customer satisfaction in a highly changing environment. This commitment is supported by our Group’s core model and core technology strategies and, in the long term, feeds our ambition to provide clean, safe and affordable solutions for people and goods, to counter the global warming effect.” says Carlos Tavares, Chairman of the Groupe PSA Managing Board.

Becoming a major player in electrified mobility

Groupe PSA has already launched 10 new plug-in hybrid or all-electric models, in line with its roadmap to offer a 100% electrified [2] range from 2025, of which 50% will be electrified by the end of 2021 with 13 additional electrified models.

Since 2019, all new models launched by Groupe PSA come with either an all-electric or a plug-in hybrid powertrain. LEV orders are promising and in line with Group objectives to be compliant with European 2020 CO2 target from Day 1.

The company mobilizes its recognized expertise and works with its partners and dealers to meet customer expectations by producing and offering a competitive line-up, with easy and state-of-the-art services for day-to-day life.

Growing LCV sales

Groupe PSA has historically offered best-in-class products to cover the full diversity of customer needs. In 2019, the Group sold 765,000 units (of which 554,000 light commercial vehicles (LCVs) and 211 derivative passenger cars (PCs), and consolidated its position with a 25.1% market share in Europe [3], in particular driven by the successful renewal of its small and medium vans in the last three years.

The Peugeot Expert, Citroën Jumpy and Opel Vivaro will come in all‑electric versions from 2020 and the whole LCV range (and passenger car equivalents) electrified by 2021.

The Group’s LCV development is advancing at a good pace in Latin America, where the Group launched a comprehensive range of LCV products and services, and in Eurasia, with the Peugeot, Citroën and Opel medium van models.

Europe: focused on performance

Leveraging disciplined management to meet CO2 targets, the Group maintained its position by achieving a 16.8% market share in a market that was up a slight 1.3%, by growing in main markets, particularly in Italy (+0.5pt) and Spain (+0.2pt), and by maintaining its market share in France and the United Kingdom while slightly declining in Germany (-0.6pt).

2019 was a year of consolidation for Peugeot. The brand completely renewed its B segment offering to support its sales growth in 2020. The new electrified range, driven by the Peugeot e-208 and e-2008, as well as the plug-in hybrid versions of the Peugeot 3008 Hybrid and 508 Hybrid sedan & SW, are fully available for B2B and B2C customers and feature among the lowest CO2 emissions of the market.

Citroën had the strongest growth among the top 12 best-selling brands in Europe, increasing its market shares in the main markets. Its performance was notably driven by the C5 Aircross SUV, launched in January 2019, which will be available in a plug-in hybrid version in 2020.

DS Automobiles sales surged globally, especially in the second half of the year (+56%) driven by the success of its renewed range. In France, DS main market, the successful DS 7 CROSSBACK and DS 3 CROSSBACK models are now strongly positioned and the brand’s performance is being enhanced by the growing exclusive DS network, with 356 point of sales to date.

Opel Vauxhall focused its strategy on profitable sales channels and market segments. Through the consistent implementation of the core model strategy, Opel Vauxhall have taken steps toward ambitious future CO2 targets. The Grandland X (+29%) and Crossland X (+28%) SUVs and the LCVs (+20%) were particularly successful.

Middle East – Africa: market share increase in major markets

Groupe PSA’s market share increased by 0.4 pt in the region with registrations up 9,100 units compared to 2018, despite markets declining by 100,000 units [4]. Strong breakthroughs were made in Turkey (+2.1pts), Egypt (+6.1pts) and Morocco (+2.1pts). 2019 regional performance versus 2018 remained impacted by the wind down in Iran (May 2018) [5].

The production started mid-September 2019 in the Kenitra plant, in Morocco. The production capacity will be doubled to reach 200,000 vehicles as early as Mid-2020.

China & Southeast Asia: reshaping the business model

DPCA has set out its priorities in a six-year strategic plan presented last September, based on profitable sales, a lower breakeven point and a progressive increase in volumes for the Peugeot and Citroën brands. The DS brand is committed to the Chinese market and finalizes a new strategic plan. The sale of Groupe PSA shares in the CAPSA joint venture is part of this plan. 2020 will be the first year of Groupe PSA’s NEV offensive in China, with five NEV models to be launched and sold in China[6].

In ASEAN, the Group’s Malaysian hub NAM [7] started production with the Peugeot 3008 and 5008.

Latin America: contracting markets

Markets were hard hit in Argentina (-43%) and Chile (-11%) by the economic and political situations. Driven by the success of the new SUV C4 Cactus and the LCV offering, Groupe PSA sales remained brisk in Mexico (+13%), Brazil (+2%) and in smaller markets (Colombia, Cuba, Ecuador and Uruguay).

India-Pacific: sales growth in Japan

Sales grew slightly in the region despite declining markets. The recurring success in Japan continued with sales up 20%. Groupe PSA started the production of transmissions in India (Hosur plant), with its partner AVTEC Ltd (a CK Birla Group Co.) and is on track to launch the C5 Aircross SUV in India in 2020, to be followed in 2021 by new and disruptive Citroën models designed locally.

Eurasia: relaunch of the Opel brand

Sales increased in the region in H2 2019, especially in Ukraine and Russia. The Group improves faster than the market in Ukraine, thanks to all four brands. The Opel brand strengthened its presence in the Ukrainian market at the beginning of 2019 and the DS brand was launched in H2 2019.

Whereas the Russian market was down -2.3%, Group LCV sales increased with the Peugeot Traveller/Expert and the Citroën SpaceTourer/Jumpy. The Group recently relaunched the Opel brand in Russia, starting with the Zafira Life and Grandland X models.

[1] 4 BEV: DS 3 CROSSBACK E-TENSE, Peugeot e-208 and e-2008, Opel Corsa-e and 6 PHEV: Peugeot 3008 HYBRID, 508 HYBRID and 508 SW HYBRID, Citroën C5 Aircross Hybrid, Opel Grandland X Hybrid4, DS 7 CROSSBACK E-TENSE 4x4

BEV = Battery Electric Vehicle et PHEV = Plug in Hybrid Vehicle

[2] All-electric or plug-in hybrid

[3] LCV market share excluding PC versions

[4] Excl. Iran. Estimation at January 16th.

[5]Volumes manufactured in Iran have not been recorded in consolidated sales since May 1, 2018

[6] NEV = New Energy Vehicles / 2 BEV: Peugeot e-2008, DS 3 CROSSBACK E-TENSE and 3 PHEV: Peugeot 508L HYBRID and 4008 HYBRID, C5 Aircross Hybrid

[7] Naza Automotive Manufacturing

Opel Extends Protection of its Performance and Employment

• In the context of energy transition, led by European CO2 regulations, Management and general works council agreed on extensive measures to safeguard the future
• Exclusion of forced redundancies extended by two years to July 2025
• As part of the allocation of the next generation of Opel Astra, new model will be produced in Rüsselsheim, both as hatchback and station wagon
• EMP2 platform will be localized in Rüsselsheim, allowing to build plug-in hybrid
• Decision to invest is linked to Rüsselsheim performance improvements and secures operation in at least two shift.
• Voluntary programme to be reopened for employees in Rüsselsheim, Eisenach and Kaiserslautern

In the context of far-reaching changes with regard to the ever-stricter CO2 regulations that the entire automotive industry is facing, Opel’s management and the Opel general works council have agreed extensive measures to secure employment and further increase Opel’s competitiveness. Exclusion of forced redundancies has been extended by two further years to 2025 for the employees in Germany. Trainees who are currently serving their apprenticeships will be given permanent contracts.

As a result of performance improvement, the company has decided to make further investments in the plant in Rüsselsheim, thus providing the perspective for many years of manufacturing. Rüsselsheim will produce the next generation of the Opel Astra as a five-door as of 2021 and as a station wagon in Rüsselsheim as of 2022, considering that around 95 percent of station wagon are sold in continental Europe. Allocation includes the internal combustion engine and the plug-in hybrid variants. Second plant is still to be confirmed.

This extensive investment decision will secure at least the two-shift operation of the Rüsselsheim plant.

Management and the general works council also agreed that the voluntary leave programme will be reopened for employees in Rüsselsheim, Eisenach and Kaiserslautern. This is limited to a maximum of 2,100 positions. Employees born up to and before 1963 will have the opportunity to participate in partial retirement or senior leave programmes. The voluntary leave programme is based on the principle of double voluntary action. This means employee and the employer must come to a mutual agreement.

“This agreement creates a further considerable improvement of our competitiveness. With the allocation of the next generation of Astra, we aim at safeguarding the future in times of massive transformation. At the same time, this agreement gives our employees long-term security. Protection of employment until 2025 is a strong signal,” said Opel CEO Michael Lohscheller.