European battery manufacturer Automotive Cells Company (ACC) has shelved its plans to build electric vehicle battery gigafactories in Italy and Germany, citing weaker-than-expected demand for electric vehicles, according to Italy’s metalworkers’ union UILM.
In a statement issued on Saturday, the union said ACC management had confirmed that the planned gigafactory in Termoli, Italy, would not go ahead and that a similar project in Germany had also been abandoned.
ACC, which is backed by Stellantis, said the projects had been under review since 2024 as the company reassessed its investment strategy amid a slower pace of electric vehicle adoption across key markets.
The company added that conditions required to restart the projects in both countries are “not yet in place,” and confirmed it is in discussions with unions regarding the potential shutdown of the gigafactory plans in Kaiserslautern, Germany, and Termoli.
The cancelled sites were part of a broader push by Europe to build domestic battery production capacity and reduce reliance on Chinese suppliers, which currently dominate the global battery market. However, several projects across the region have been delayed or reconsidered as manufacturers review costs and technology choices, including a possible shift toward less expensive battery solutions.
ACC is a joint venture between TotalEnergies, Mercedes-Benz, and Stellantis, which owns brands such as Peugeot, Fiat, and Chrysler.
The announcement comes a day after Stellantis warned it expects a €22 billion financial hit due to lower-than-forecast demand for electric vehicles. The company acknowledged it had significantly overestimated EV uptake, as governments in Europe and the United States have recently eased emissions targets after years of pushing for rapid electrification.
In September 2024, Italy withdrew around €250 million in European Union funding that had been allocated to the Termoli gigafactory, citing uncertainty over the project’s timeline.
