Italian and German Gigafactories Put on Ice
Automotive Cells Company (ACC) has scrapped plans to build electric vehicle battery gigafactories in Italy and Germany, the Italian metalworkers’ union UILM confirmed. The Termoli plant in Italy and the Kaiserslautern site in Germany have both been definitively shelved after being on hold since 2024. ACC is in discussions with unions about the formal shutdown process.
Slower EV Growth Forces Rethink
ACC, backed by Stellantis, cited weaker-than-expected electric vehicle demand as the main reason for halting the projects. The company is also exploring lower-cost battery technologies, which further influenced the decision. “The prerequisites for restarting ACC’s projects in Germany and Italy… are not yet in place,” the company said.
Europe’s Ambitions Face Setbacks
The canceled plants were part of Europe’s push to reduce dependence on Chinese battery producers. Stellantis recently warned that slower EV adoption could cost the automaker €22 billion. Italy had previously pulled €250 million in EU funding for the Termoli project in 2024, citing uncertainty over timing. The move comes as both European and U.S. regulators have eased emissions targets after years of pushing stricter clean vehicle mandates.
