Projects in Italy and Germany Scrapped
Automotive Cells Company (ACC) has confirmed it will not move forward with plans to build battery gigafactories in Italy and Germany, the Italian metalworkers’ union UILM announced. The Termoli plant in Italy and the Kaiserslautern site in Germany, both on hold since 2024, are now officially shelved, according to ACC management.
Slow EV Market Forces Rethink
ACC, backed by Stellantis, said weaker-than-expected electric vehicle demand and a potential shift to lower-cost battery technology influenced the decision. “The prerequisites for restarting ACC’s projects in Germany and Italy… are not yet in place,” the company explained, while also consulting with unions on the logistics of closing the projects.
A Blow to Europe’s Battery Expansion
The canceled factories were part of Europe’s push to reduce dependence on Chinese battery producers. Stellantis recently acknowledged a €22 billion financial hit due to overestimating EV demand. Italy had previously pulled €250 million in EU funding for the Termoli factory in 2024, citing project uncertainty. The move comes as both Europe and the U.S. have eased emissions targets after years of aggressive electrification policies.
