Mercedes and Stellantis pause EU battery factories, may switch to LFP cells
Mercedes and Stellantis have stopped work on their joint European EV battery factory projects, and are reassessing which direction to move forward with the possibility of shifting to cheaper lithium iron phosphate cells.
Mercedes and Stellantis first partnered to form a battery cell joint venture in 2021, calling the venture the Automotive Cells Company (ACC).
Earlier this year, ACC raised $4.7 billion to build four factories, planning to raise around 7.6 billion total Euros to build the factories.
The joint venture has already opened one factory in Douvrin, France.
But today Bloomberg reports that work has stopped on ACC’s upcoming factory in Germany, and prep work has paused on a factory site in Italy.
While this work has stopped, ACC hasn’t made a final decision what to do with these sites yet. The company says that it plans to stay flexible with its speed of investment, reacting to market trends, and will decide around the end of the year what to do with these sites.
Bloomberg reports that the head of ACC, Yann Vincent, said that demand for EVs has slowed in Europe – despite that EV sales rose 14.8% year over year in April, faster than non-electrified car sales rose, though slower than conventional (non-plug-in) hybrids. He says that growth is mostly expected in mass-market segments, something which many Western EV makers have heretofore failed to target, though Chinese automakers are starting to, especially in Europe.
Previously, Mercedes had committed to go all-electric by the end of the decade, but in February said that it would continue building poisonous, climate-change-causing gas vehicles “well into the 2030s”, despite the necessity that the world stop building those vehicles as soon as possible.
Electrek’s Take
I’m of two minds on this one. First, the decision to pause building EV battery factories makes no sense. We need more EVs, and we need them faster than we’re getting them. The transition to sustainable transport needs to be accelerated, not decelerated, and we don’t get to acceleration by pausing and waiting.
And reacting to market trends doesn’t make a lot of sense – factories take a while to build (ACC says the first cells wouldn’t come out of its Germany site until mid-late 2027), so if you wait to build one until after the trend has already started, you’ve already missed the trend. This is how Tesla gained the dominant position in EVs that it has today, because automakers refused to see the trend towards EVs for many years before finally pulling up their pants (which they’re still waffling over).
But, this pause could end up having a positive outcome anyway, as ACC is reportedly thinking about switching to cheaper LFP cells.
LFP cells have a number of benefits – lower cost, higher durability, and simpler mineral sourcing – but have lower energy density than NMC cells. As a result, most cars have focused on NMC (to feed a public that thinks they need more range than they do), but we’re starting to see more entry-level models equipped with LFP cells to help bring costs down.
These LFP cells have been used to particularly positive effect in low-cost Chinese autos, which has helped them to undercut Western automakers on price. If ACC sees growth coming from the mass market side, then LFP cells would be a reasonable choice. The battery is the most costly part of an EV, and cutting costs there can help a lot.
Further, with the EU threatening tariffs (and the US already implementing them), onshoring LFP production would be necessary if ACC wants to target mass market cells. As much as these tariffs are a dumb idea, one problem is that they might lull domestic automakers into a false sense of security. If the automakers actually do use the opportunity to build a new industrial base, then at least that negative is removed and the tariffs will have had their “intended” effect.
So ACC should continue forward with their plans, rather than pausing based on false reports of dropping sales. But a switch to LFP does seem prudent, especially when most LFPs are currently made in China, and when cost is one of the main challenges with EV production in this day and age.
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Tesla’s retro-futuristic diner with Superchargers and giant movie screens is ready to open, and I have to admit, it looks pretty sick.
This project has been in the works for a long time.
In 2018, Elon Musk said that Tesla planned to open an “old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in Los Angeles.” It was yet another “Is he joking?” kind of Elon Musk idea, but he wasn’t kidding.
A few months later, Tesla applied for building permits for “a restaurant and Supercharger station” at a location in Santa Monica. However, the project stalled for a long time, apparently due to local regulations.
Nevertheless, Tesla still moved forward with a Supercharger at the location, but it had to move the diner project to Hollywood. In 2022, Tesla filed the construction plans with the city, giving us the first look at what the automaker intends to build.
In 2023, the automaker broke ground on the site of the diner.
7 years after being originally announced, the project appears now ready to open:
Musk said that he ate at the diner last night and claimed that it is “one of the coolest spots in LA.” He didn’t say when it will open, but Tesla vehicles have been spotted at Supercharger and people appear to be testing the dinning experience inside.
A Tesla Optimus Robot can be seen inside the diner on a test rack. It looks like Tesla might use one for some tasks inside the diner.
Earlier this year, Tesla integrated the diner into its mobile app – hinting at some interaction through the app – possibly ordering from it.
Electrek’s Take
I think it looks pretty cool. I am a fan of the design and concept.
However, considering the state of the Tesla community, I don’t think I’d like the vibes. That said, it looks like Tesla isn’t prominently pushing its branding on the diner.
You can come and charge there, but it looks like Tesla is also aiming to get a wider clientele just for dining.
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Hyundai’s electric minivan is finally out in the open. The Staria EV was caught without camo near Hyundai’s R&D center in Korea, giving us a closer look at the electric minivan undisguised.
Hyundai’s electric minivan drops camo ahead of debut
The Staria arrived in 2021 as the successor to the Starex, Hyundai’s multi-purpose vehicle (MPV). Although the Staria has received several updates throughout the years, 2026 will be its biggest by far.
Hyundai will launch the Staria EV, its first electric minivan. Like the current model, the 2026 Staria will be available in several different configurations, including cargo, passenger, and even a camper version.
We’ve seen the Staria EV out in public a few times already. Last month, we got a glimpse of it while driving on public roads in Korea.
Despite the camouflage, new EV-like design elements were visible, including updated LED headlights and a full-length light bar. Although it’s still unclear, the electric version appears to be roughly the same size as the current Staria from the side, but slightly wider from the front.
New images posted on the South Korean forum Clien reveal a test car, expected to be Hyundai’s Staria electric minivan, without camo.
Like most Hyundai test cars, the prototype has a black front and a grey body. It still features a similar look to other prototypes we’ve seen, but you can clearly see the new facelift.
Earlier this year, a Staria EV was spotted in a parking lot in Korea, featuring a similar look. The electric version is nearly identical to the Staria Lounge, but with an added charge port and closed-off grille.
The Hyundai Staria EV is expected to make its global debut later this year. Technical details have yet to be revealed, but it’s expected to feature either a 76 kWh or 84 kWh battery, providing a range of around 350 km (217 miles) to 400 km (249 miles).
Hyundai’s electric SUV arrives after Kia introduced its first electric van, the PV5, which launched in Europe and Korea earlier this year.
In Europe, the Kia Passenger PV5 model is available with two battery pack options: 51.5 kWh and 71.2 kWh, providing WLTP ranges of 179 miles and 249 miles, respectively. The Cargo version has a WLTP range of 181 miles or 247 miles.
Source: TheKoreanCarBlog, Clien
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