Termoli and German Factories Canceled
Automotive Cells Company (ACC) has officially abandoned plans to build new electric vehicle battery gigafactories in Italy and Germany, the Italian metalworkers’ union UILM confirmed. ACC management reportedly told the union that the Termoli project, along with the German site, will not move forward, ending years of anticipation. The factories had been on hold since 2024 as the company reevaluated the market and technology choices.
Slower EV Demand Forces Strategic Shift
ACC, a joint venture backed by Stellantis, TotalEnergies, and Mercedes-Benz, cited weaker-than-expected electric vehicle demand as the main reason for shelving the projects. The company is also considering switching to lower-cost battery technology, further delaying expansion plans. ACC said that the “prerequisites for restarting” the Italian and German factories “are not yet in place” and is consulting with unions on how to wind down the projects.
A Blow to Europe’s Battery Ambitions
The canceled factories were part of a broader effort to reduce Europe’s reliance on Chinese battery suppliers. Stellantis recently warned that slower EV adoption would cost the company €22 billion, highlighting the challenges facing the region’s electrification strategy. Italy had already pulled €250 million in EU funding for the Termoli site in 2024, citing uncertainty over the project timeline. With weaker demand and eased emissions targets across Europe and the US, ACC’s decision underscores the difficulties of scaling battery production on the continent.
