Gigafactory Plans Put on Ice
Automotive Cells Company (ACC) has dropped plans to build major electric vehicle battery plants in both Italy and Germany, citing weaker-than-expected demand for EVs across Europe. The decision affects proposed gigafactories in Termoli, Italy, and Kaiserslautern, Germany, projects that have been in limbo since 2024.
Italy’s metalworkers’ union UILM said ACC management confirmed the worst fears during talks on Saturday, making clear that both sites have now been definitively shelved.
Slower EV Demand Forces Rethink
ACC, which counts Stellantis among its backers, acknowledged that the conditions needed to restart the projects are no longer in place. The company had already paused development as it reassessed market demand and considered shifting toward cheaper battery technologies.
The cancelled factories were part of a broader European push to expand battery production and cut reliance on Chinese suppliers that currently dominate the sector. But that momentum has faded as EV sales growth has failed to meet earlier forecasts.
Industry and Policy Pressures Mount
ACC is jointly owned by TotalEnergies, Mercedes-Benz and Stellantis, whose brands include Peugeot, Fiat and Chrysler. Stellantis recently warned it expects a €22 billion hit after admitting it had significantly overestimated demand for electric vehicles.
That reassessment comes as governments in Europe and the United States have begun easing previously strict emissions targets, softening the pressure on automakers to rapidly shift to electric models. In Italy, the uncertainty had already led authorities to pull €250 million in EU funding for the Termoli project in late 2024.
ACC said it remains in discussions with unions about how to manage a potential shutdown of both gigafactory projects, marking a clear slowdown in Europe’s once-ambitious battery expansion plans.
