Italy and Germany Projects Cancelled
Automotive Cells Company (ACC) has scrapped plans to build electric vehicle battery gigafactories in Italy and Germany. The Italian metalworkers’ union UILM confirmed the decision, saying ACC management told them the Termoli plant is definitively canceled, with the German site in Kaiserslautern facing the same fate. The projects had been on hold since 2024 due to slower-than-expected EV demand.
Slower EV Growth Forces Strategic Shift
ACC, backed by Stellantis, TotalEnergies, and Mercedes-Benz, explained that the prerequisites for restarting these projects are not in place. The company is also exploring lower-cost battery technologies, contributing to the decision. Talks with unions are ongoing regarding the shutdown process and how it will affect workers.
A Setback for Europe’s Battery Ambitions
The canceled factories were part of Europe’s strategy to reduce reliance on Chinese battery producers. Stellantis recently warned it would face a €22 billion hit after overestimating EV demand. Italy had already withdrawn €250 million in EU funding in 2024 amid uncertainty over the Termoli project timeline. The slowdown comes as U.S. and European authorities ease emissions targets after years of pushing stricter EV policies.
