Italy and Germany Projects Abandoned
Automotive Cells Company (ACC) has officially scrapped plans to build electric vehicle battery gigafactories in Termoli, Italy, and Germany, the Italian metalworkers’ union UILM confirmed. ACC management told the union that both projects, which had been on hold since 2024, will not move forward. Talks with unions are ongoing to determine how the shutdowns will be managed.
Slower EV Demand Forces Strategic Shift
The company, backed by Stellantis, cited slower-than-expected growth in electric vehicle sales as the main reason for halting the projects. ACC has also been evaluating lower-cost battery technologies, adding to the uncertainty over the original factory plans. “It is clear that the prerequisites for restarting ACC’s projects in Germany and Italy… are not yet in place,” the company said.
Broader Implications for Europe’s Battery Market
The cancelled factories were part of a wider European effort to reduce dependence on Chinese battery producers. Stellantis recently warned of a €22 billion financial hit after overestimating EV demand, highlighting the challenges in the market. Italy had already withdrawn €250 million in EU funds in 2024 due to doubts over the Termoli factory’s timeline. The setback underscores the hurdles facing Europe’s transition to electric vehicles amid changing demand and eased emissions targets.
