Gigafactory Projects Put to Bed
Automotive Cells Company (ACC), a key player in Europe’s electric vehicle battery push, has abandoned plans to build large-scale battery factories in Italy and Germany. The decision was confirmed by Italy’s metalworkers’ union UILM, which said ACC management had formally dropped the proposed gigafactory in Termoli as well as a similar project in Germany.
Both sites had been frozen since 2024, but the latest confirmation makes clear they will not be revived.
Slower EV Demand Changes the Picture
ACC, which is backed by carmaking heavyweight Stellantis, pointed to weaker-than-expected growth in electric vehicle sales as the main reason for the move. The company said the conditions needed to restart the projects “are not yet in place,” after reassessing market demand and the economics of battery production.
The factories were originally part of a wider European effort to cut reliance on Chinese battery suppliers. However, rising costs and discussions around switching to cheaper battery technologies led ACC to pause and ultimately shelve the investments. The company is now in talks with unions about how to manage a potential shutdown of the projects in Termoli and Kaiserslautern.
A Broader Reality Check for Europe’s EV Plans
ACC is a joint venture between TotalEnergies, Mercedes-Benz and Stellantis, which owns brands such as Peugeot, Fiat and Chrysler. Stellantis recently warned it expects a €22 billion financial hit after overestimating how quickly drivers would switch to electric vehicles.
That admission reflects a wider slowdown in EV momentum, as governments in Europe and the US have eased emissions targets after years of pushing for cleaner cars. In Italy, uncertainty over the Termoli factory had already led the government to withdraw around €250 million in EU funding in September 2024. Together, these developments underline how Europe’s electric transition is proving more uneven — and more cautious — than once expected.
