Italy and Germany Projects Halted
Automotive Cells Company (ACC) has officially abandoned plans to build electric vehicle battery gigafactories in Italy and Germany. The Italian metalworkers’ union UILM confirmed that ACC management informed them the Termoli plant is definitively canceled, with the Kaiserslautern project in Germany also shelved. Both projects had been on hold since 2024 due to weaker-than-expected EV market growth.
Slower EV Adoption Forces Strategic Reassessment
ACC, a joint venture backed by Stellantis, TotalEnergies, and Mercedes-Benz, said it is evaluating cheaper battery technologies and that the conditions for restarting the factories “are not yet in place.” The company has been negotiating with unions over the process for shutting down the projects, highlighting the challenges posed by the slower uptake of electric vehicles in Europe.
Broader Impact on Europe’s Battery Ambitions
The canceled factories were part of Europe’s push to reduce dependence on Chinese battery suppliers. Stellantis recently warned that it would face a €22 billion impact after overestimating EV demand. Italy had already withdrawn €250 million in EU funds earmarked for the Termoli gigafactory in September 2024 due to uncertainty over the project timeline. The decision comes as regulators in both Europe and the U.S. ease emissions targets after years of strict electrification policies.
