Projects in Italy and Germany Cancelled
Automotive Cells Company (ACC), a European battery venture backed by Stellantis, TotalEnergies, and Mercedes-Benz, has officially shelved plans to build gigafactories in Italy and Germany. The Italian metalworkers’ union UILM confirmed the news on Saturday, saying ACC’s Termoli project, along with its German counterpart, will not move forward. Both projects had been paused since 2024 amid slower-than-expected growth in electric vehicle demand.
Slower EV Market Forces Strategic Shift
ACC cited the need to rethink its approach as demand for electric vehicles in Europe has not met earlier projections. The company has also been considering adopting less-expensive battery technologies, which contributed to halting the new factories. ACC added that “the prerequisites for restarting the projects… are not yet in place” and is negotiating with unions over how to manage a potential shutdown in Termoli and Kaiserslautern.
Broader Impact on Europe’s Battery Ambitions
The canceled projects mark a setback for Europe’s strategy to reduce reliance on Chinese battery suppliers. Stellantis, Europe’s second-largest carmaker, recently warned it would face a €22 billion loss due to overestimating EV demand. The slowdown comes as European and US authorities ease previously strict emissions targets. Italy had already withdrawn around €250 million in EU funds for Termoli in September 2024, citing uncertainty over the factory’s timeline.
