ACC Scraps German-Italian Battery Plant, Keeps Only French Line

On February 8, Automotive Cells Company (ACC), a joint venture in electric vehicle batteries, announced the complete cancellation of its plans to build gigafactories in Termoli, Italy, and Kaiserslautern, Germany. The project, which had been on hold since May 2024, has now been formally terminated due to weak demand for battery electric vehicles (BEVs) in Europe. ACC originally planned to construct one 8 GWh factory each in France, Germany, and Italy. It will now retain only its Douvrin plant in France, scaling up its total capacity to 28 GWh, which is already supplying batteries for Stellantis vehicles. This decision follows Stellantis’ announcement on February 7 to slash its electrification investments and record a €22.2 billion impairment charge, which sent its share price plunging by 25.2% that day. ACC emphasized that sluggish market conditions were the primary reason for terminating the project, while Stellantis stated it would continue operating its internal combustion engine and powertrain business at the Termoli facility. The strategic shift highlights the challenges facing Europe’s domestic battery industry—including insufficient demand, uncertain returns, and difficulties in achieving supply chain coordination—thereby delaying the region’s efforts to reduce reliance on Asian battery suppliers.