Plans in Italy and Germany Abandoned
Automotive Cells Company (ACC) has officially dropped its plans to build electric vehicle battery gigafactories in Italy and Germany, the Italian metalworkers’ union UILM confirmed. ACC management told the union that the Termoli plant is definitively off the table, with a similar decision made for the German site in Kaiserslautern. These projects had already been on hold since 2024.
Slower EV Growth Forces Strategic Shift
ACC, backed by Stellantis, said the slower-than-expected demand for electric vehicles has made it difficult to justify the factories. The company is also exploring cheaper battery technologies, which contributed to the pause. “The prerequisites for restarting ACC’s projects in Germany and Italy… are not yet in place,” the company said, adding that discussions with unions are ongoing regarding the shutdown process.
A Setback for Europe’s Battery Ambitions
The canceled plants were part of Europe’s effort to reduce reliance on Chinese battery producers. Stellantis, Europe’s second-largest automaker, recently warned it would face a €22 billion impact after overestimating EV demand. Italy had previously withdrawn €250 million in EU funding for the Termoli project in September 2024, citing uncertainty over the timeline. The decision comes as both European and U.S. authorities ease emissions targets after years of pushing aggressive electrification goals.
