Stellantis Faces Setback: ACC Shelves Italian and German Gigafactory Plans

In a significant industry development, the Stellantis-backed Automotive Cells Company (ACC) has shelved plans for gigafactories in Italy and Germany. This decision, conveyed to unions by ACC, brings new challenges to Europe's ambition to bolster its domestic battery industry.

ACC, a joint venture with stakeholders including Stellantis, Mercedes-Benz, and TotalEnergies, initially aimed to establish battery production in France, Germany, and Italy. However, ACC announced that while the French plant is operational, the German and Italian projects have been indefinitely postponed over unmet conditions since May 2024. The company's future strategies are under review.

The situation is compounded by Stellantis's record share drop, as the automaker reduced its electric vehicle commitments in light of weak demand. Despite the setbacks, Stellantis vows continued investments in its Italian operations, intending to offset the gigafactory hiatus with gearbox and engine production enhancements at Termoli.