Plans in Italy and Germany Abandoned
Automotive Cells Company (ACC) has officially scrapped its plans to build electric vehicle battery gigafactories in Italy and Germany, the Italian metalworkers’ union UILM confirmed on Saturday. The union said ACC management told them that the Termoli project in Italy, as well as a similar factory in Germany, will not move forward. Both projects had been on hold since 2024.
Slower EV Demand Forces Strategic Shift
ACC, backed by Stellantis, Mercedes-Benz, and TotalEnergies, cited weaker-than-expected growth in the EV market as a key reason for shelving the factories. The company has also been considering a switch to less expensive battery technology, prompting a rethink of its European expansion plans. “The prerequisites for restarting ACC’s projects in Germany and Italy are not yet in place,” ACC said, adding that discussions with unions over the shutdown process are ongoing.
Setback for Europe’s Battery Ambitions
The decision marks a blow to Europe’s strategy of reducing dependence on Chinese battery suppliers. Stellantis recently acknowledged it overestimated EV demand, warning of a €22 billion hit. The slowdown coincides with governments in Europe and the U.S. easing strict emissions targets after years of pushing faster EV adoption. Italy had previously withdrawn €250 million in EU funding for the Termoli project in September 2024, reflecting ongoing uncertainty about the factory’s future.
