Italy and Germany Projects Cancelled
Automotive Cells Company (ACC) has abandoned plans to build electric vehicle battery gigafactories in Termoli, Italy, and Kaiserslautern, Germany, the Italian metalworkers’ union UILM confirmed. ACC, backed by Stellantis, said the factories have been on hold since 2024 and are now officially shelved due to slower-than-expected growth in electric vehicle demand.
Strategic Shift in Battery Production
The canceled projects were part of Europe’s push to reduce reliance on Chinese battery suppliers. ACC has indicated it is exploring less expensive battery technologies, with the prerequisites for restarting the Termoli and Kaiserslautern plants not yet in place. Discussions with unions are ongoing to determine the process for winding down the projects.
Impact on European EV Ambitions
The setback comes as Stellantis warned it could face a €22 billion financial hit after overestimating EV demand. Italy had already pulled €250 million in EU funding for the Termoli gigafactory in 2024 amid project uncertainties. The decision reflects broader trends, with both European and U.S. authorities easing previously strict emissions targets after years of aggressively promoting electric vehicles.
