Gigafactories in Italy and Germany Abandoned
Automotive Cells Company (ACC), a major European battery venture, has decided to scrap plans to build large electric vehicle battery plants in Italy and Germany. The move was confirmed by Italy’s metalworkers’ union UILM, which said ACC management had acknowledged that the proposed gigafactory in Termoli, as well as a planned site in Germany, would not go ahead.
Both projects had already been frozen since 2024, as the company reassessed the market and its long-term strategy.
Slower EV Demand Forces Rethink
ACC, which is backed by carmaking giant Stellantis, said the expected surge in electric vehicle demand has failed to materialise at the pace originally forecast. As a result, the conditions needed to restart the projects are no longer there.
The factories were part of a wider European effort to build homegrown battery capacity and cut dependence on Chinese manufacturers that currently dominate the sector. However, ACC paused the developments while considering a shift toward cheaper battery technologies, reflecting the pressure to rein in costs as EV sales growth cools.
The company is now in discussions with unions about how a potential shutdown of the planned sites in Kaiserslautern and Termoli would be handled.
Broader Warning Signs for the EV Market
ACC is a joint venture between TotalEnergies, Mercedes-Benz and Stellantis, whose brands include Peugeot, Fiat and Chrysler. Stellantis recently warned it expects a €22 billion financial hit after significantly overestimating electric vehicle demand across its markets.
That reassessment comes as governments in Europe and the United States have begun easing strict emissions targets following years of aggressive clean-transport policies. In Italy, uncertainty around the Termoli project had already led the government to withdraw around €250 million in EU funding in September 2024.
Together, these developments underline growing doubts about the speed of Europe’s electric transition and the scale of investment the market can currently sustain.
