Gigafactory Plans Scrapped in Italy and Germany
Automotive Cells Company (ACC) has dropped plans to build large-scale electric vehicle battery plants in both Italy and Germany, according to Italy’s metalworkers’ union UILM. The union said ACC management confirmed that the long-discussed gigafactory in Termoli will not go ahead, and that a similar project in Germany has also been abandoned.
The projects had already been paused since 2024, but the latest decision makes clear they will not be revived in the near future.
Slower EV Uptake Forces Rethink
ACC, which is backed by carmaker Stellantis, said the slower-than-expected growth in electric vehicle demand has undermined the business case for the new factories. The company has also been reassessing its technology strategy, including whether to switch to cheaper battery designs, contributing to further delays.
In a statement, ACC said the conditions needed to restart the Italian and German projects “are not yet in place.” It added that talks are under way with unions to discuss how a formal shutdown of the proposed gigafactories in Kaiserslautern and Termoli would be handled.
Setback for Europe’s Battery Push
ACC was part of a broader European effort to expand battery manufacturing and reduce dependence on Chinese suppliers that dominate the global market. The setback highlights the growing strain on that strategy as demand for electric cars fails to meet earlier forecasts.
Stellantis, Europe’s second-largest carmaker, recently warned it would take a €22 billion hit after significantly overestimating EV demand. The reassessment comes as governments in Europe and the United States have eased emissions targets after years of pushing for rapid electrification.
Italy had already signaled doubts about the Termoli project in September 2024, when it withdrew around €250 million in EU funding due to uncertainty over the factory’s timeline.
