Automotive Cells Company (ACC), the battery joint venture backed primarily by Stellantis alongside Mercedes-Benz and TotalEnergies, has officially halted plans for gigafactories in Termoli, Italy, and Kaiserslautern, Germany, the Italian metalworkers’ union UILM reported. ACC originally proposed three European manufacturing sites—each with 8 gigawatt-hours (GWh) of annual capacity—in France, Germany and Italy.
According to ACC statements, the Italian and German projects have been on hold since May 2024, and current conditions make their restart unlikely. The company noted that it is evaluating alternative scenarios but did not provide further details. Meanwhile, production has already begun at ACC’s French plant, where two production blocks are being configured to deliver 13 GWh and 15 GWh of capacity, respectively, replacing the initial three-site plan. Finished battery cells for Stellantis vehicles are in production, and a source close to the project indicates that battery packs for Mercedes-Benz models are expected to commence in mid-2026.
Stellantis said it is closely monitoring the developments and remains fully engaged in assessing the industrial and social implications of the decision. The weighted impact on Stellantis’s share price was evident earlier this month, when the company recorded non-cash charges of roughly €22.2 billion related to a shift in its electric-vehicle strategy. That announcement coincided with a record single-day share decline of 25.2%.
The shelving of the Italian and German sites underscores broader challenges facing Europe’s efforts to establish a homegrown battery supply chain amid weakening demand for electric vehicles. UILM has urged Stellantis to compensate for the cancellation with “clear and coherent industrial decisions,” referencing previously announced plans to expand gearbox and engine production at the Termoli plant. Stellantis reiterated its commitment to those engine and gearbox investments and confirmed that current ACC employees will be offered roles within its broader organization.
Source: Batteries News
