ACC Halts Gigafactory Plans in Italy and Germany

ACC Shelves Major European Projects

Automotive Cells Company (ACC), a battery venture backed by Stellantis, has officially shelved its plans to build gigafactories in Termoli, Italy, and Kaiserslautern, Germany. The Italian metalworkers’ union UILM confirmed the decision, which ACC later stated was due to the prerequisites for the projects not being met.

Slowing EV Demand Drives Decision

This move reflects a broader industry adjustment to lackluster demand for electric vehicles across Europe. ACC, a joint venture between Stellantis, Mercedes-Benz, and TotalEnergies, had placed the projects on standby since May 2024. The cancellation aligns with a market-wide recalibration of electrification strategies amid weaker sales forecasts.

Impact on Stellantis and the Market

The decision is directly linked to Stellantis scaling down its electric-vehicle development plans. This strategic pivot contributed to a record 25.2% single-day drop in Stellantis shares after the company announced significant financial charges. The halt raises questions about the future of the affected sites and the European EV battery supply chain.

Summary and Outlook

With the gigafactory plans definitively shelved, stakeholders are awaiting alternative industrial proposals from Stellantis for the Termoli and Kaiserslautern locations. The industry is closely watching how major automakers will adapt their investment strategies in response to the evolving EV market dynamics.

FAQ

Q: Why did ACC cancel its gigafactory projects?
A: ACC halted the projects because the necessary prerequisites were not expected to be met, a decision influenced by slowing demand for electric vehicles.

Q: Who are the main partners in the ACC venture?
A: ACC is a joint venture owned by Stellantis, Mercedes-Benz, and TotalEnergies.

Source: Investing.com