TotalEnergies, which launched the largest battery-based energy storage site in France in December, aims to create a profitable stream of business from its batteries operations, the company’s chief executive said on Monday.
Batteries are a “new fuel” for electric vehicles, Patrick Pouyanne, who is also the chairman of the company’s board, said during a talk on energy transition at CeraWeek in Houston.
“You can create a lot of value if you can store electricity that you produce," Mr Pouyanne said.
"For us, battery is an important part in the value chain in establishing a profitable electricity player.
“We have established JV [joint venture] with Mercedes-Benz and Stellantis to produce batteries … we are convinced it will be a new way to produce value, an important technology for electric mobility and an important part of energy transition."
The French integrated oil and gas company TotalEnergies has entered an agreement with Dutch provider of innovative mobility solutions Stellantis and German car maker Mercedes-Benz to establish Automotive Cells Company (ACC).
They aim to increase ACC’s industrial capacity to at least 120 gigawatt hours by the end of this decade.
The initiative is supported by the French, German and European authorities, to create a European battery champion for electric vehicles.
Global battery market size is expected to reach $310.8 billion by 2027, growing at a compound annual rate of 14.1 per cent, according to the US-based market research and consulting company Grand View Research.
Technological advancements in terms of enhanced efficiency and cost reduction are likely to open new paths for the global battery market in the coming years, industry experts say.
TotalEnergies adopted a new identity last year, signalling a new phase in its transition to net zero.
“People in the company are very happy with this move because it is way to stay aligned with the society’s expectations," Mr Pouyanne said.
“Fundamentally, we continue to produce oil and gas, but we have decided that we must be a leader in energy transition … our strategic move is to become electricity and renewables producer and supplier.”
As part of its ambition to reach net zero by 2050, TotalEnergies is building a portfolio of activities in renewables and electricity.
At the end of 2021, the company’s gross renewable electricity generation capacity was more than 10GW.
It aims to expand this business to reach 35GW of gross-production capacity from renewable sources and storage by 2025, and then 100GW by 2030, with the objective of being among the world's top five producers of electricity from wind and solar energy, the company said.
It is serious about expanding in Africa and ensuring a “sustainable growth” in the continent.
“Africa is blessed with natural resources," Mr Pouyanne said. "Our expansion and energy development in the continent is part of the sustainable development … getting people out of the poverty in a sustainable way.
"We are out there to bring energy and develop shared values and shared prosperity that is our mission as a company."
Active in more than 130 countries, TotalEnergies employs nearly 105,000 people.
