Italy’s Industry Minister has set a timeframe for Stellantis to confirm its plans to build a battery Gigafactory in the country, with public funding at stake. The minister expects a final response from Stellantis on the proposed battery manufacturing project shortly.
The facility is part of the ACC joint venture, in which Stellantis holds a majority stake. ACC has proposed three gigafactories across Europe, but recently suspended development at two sites, including the Italian site, as the company adjusts its strategy to focus on lower-cost battery technologies in response to changing market conditions for electric vehicles.
The Italian Gigafactory initiative, which involves the transformation of a Stellantis motor manufacturing site in Termoli, represents a total planned investment of approximately €2 billion, including €370 million in public funding from the European Union’s post-pandemic recovery program.
The Minister stressed that if Stellantis does not provide a positive response in time, the government will redirect the funds allocated to alternative projects. He stressed the importance of using these funds effectively and not allowing them to remain unused due to unfulfilled commitments.
Stellantis issued a statement indicating that ACC is currently refining the Termoli Gigafactory plan to incorporate advanced cell and module production technology in line with current market trends. The company also noted interim measures to increase production of hybrid engine components at the facility.
The Termoli Gigafactory was originally scheduled to begin operations in 2026. ACC, whose shareholders include Mercedes and TotalEnergies, has said it will present an updated industrial and construction schedule in late 2024 or early 2025.
The minister, who has previously expressed concerns about Stellantis’ vehicle production levels in Italy, said the government would consider alternative public funding options for the Termoli Gigafactory if Stellantis confirmed its plans at a later date.
Source: Reuters
