Italy and Germany Projects Halted
Automotive Cells Company (ACC) has decided to cancel its plans for building electric vehicle battery gigafactories in Termoli, Italy, and Kaiserslautern, Germany, the Italian metalworkers’ union UILM confirmed. ACC management told the union the projects are definitively shelved after being on hold since 2024 due to slower-than-expected EV growth.
Slower EV Market Forces Reassessment
The company, backed by Stellantis, TotalEnergies, and Mercedes-Benz, said it is re-evaluating its strategy amid a weaker-than-forecasted EV market and the potential switch to less expensive battery technology. “The prerequisites for restarting ACC’s projects in Germany and Italy are not yet in place,” the company said, adding that discussions with unions over shutdown procedures are ongoing.
Broader Impact on Europe’s EV Ambitions
The canceled factories were part of Europe’s effort to reduce reliance on Chinese battery producers. Stellantis recently warned of a €22 billion financial impact due to overestimating EV demand. Italy had already pulled €250 million in EU funds for the Termoli plant in September 2024, citing project uncertainties. The slowdown comes as European and U.S. authorities ease strict emissions targets after years of pushing aggressive EV adoption.
