Gigafactory Projects Put on Ice
Automotive Cells Company (ACC), a major European battery venture, has abandoned plans to build electric vehicle battery gigafactories in Italy and Germany, citing slower-than-expected growth in EV demand. The news was confirmed by Italy’s metalworkers’ union UILM, which said ACC management has definitively shelved the proposed site in Termoli, as well as a planned factory in Germany.
Both projects had already been paused since 2024, but the latest update signals a full stop rather than a delay. ACC acknowledged that the conditions needed to restart construction are simply not in place.
EV Market Reality Forces a Rethink
ACC, which is backed by Stellantis along with TotalEnergies and Mercedes-Benz, said the cooling pace of electric vehicle adoption has forced it to reconsider its expansion strategy. The now-cancelled plants were part of a broader European effort to build homegrown battery production and reduce reliance on Chinese suppliers.
Those ambitions were complicated by rising costs and internal discussions over switching to cheaper battery technologies. As uncertainty dragged on, ACC entered talks with unions about how to manage a potential shutdown of the planned facilities in Kaiserslautern and Termoli.
Ripple Effects Across the Auto Industry
The decision comes as Stellantis warned it faces a €22 billion hit after significantly overestimating demand for electric vehicles. That admission reflects a wider recalibration across the industry, as governments in Europe and the United States ease emissions targets following years of aggressive clean-transport policies.
Italy had already withdrawn around €250 million in EU funding for the Termoli project in September 2024 due to doubts over its timeline. With ACC now stepping back entirely, the setback underscores the growing gap between Europe’s long-term EV ambitions and the realities of a slower-moving market.
