Gigafactory ambitions put on ice
Plans to build massive electric vehicle battery plants in Italy and Germany have been scrapped by Automotive Cells Company (ACC), as demand for EVs continues to grow far more slowly than expected. The decision was confirmed by Italy’s metalworkers’ union UILM, which said ACC management had officially ruled out the projects in both countries.
According to the union, the long-discussed gigafactory planned for Termoli in Italy will not go ahead, and the same fate has met the proposed site in Germany. Both projects had already been paused since 2024 while the company reassessed market conditions.
EV demand fails to meet expectations
ACC, which is backed by Stellantis along with TotalEnergies and Mercedes-Benz, acknowledged that the conditions needed to restart the projects simply are not there. Sluggish EV sales across Europe have forced the company to reconsider its expansion strategy, including a possible shift toward cheaper battery technologies.
The cancelled sites were part of a broader European push to build a domestic battery industry and reduce reliance on Chinese manufacturers, who currently dominate the global market. But with sales lagging, many of those ambitions have run into financial and strategic roadblocks.
ACC said it is now in talks with unions about how a potential shutdown of the Termoli and Kaiserslautern projects would be handled.
Wider industry impact across Europe
The move reflects deeper issues facing Europe’s auto sector. Stellantis, the continent’s second-largest carmaker, recently warned it expects a €22 billion hit after overestimating how quickly consumers would adopt electric vehicles. Governments have also softened emissions targets in both Europe and the US, easing pressure on manufacturers to transition as rapidly as once planned.
Italy had already signaled doubts last year, withdrawing around €250 million in EU funding that had been set aside for the Termoli factory due to uncertainty over timelines. With EV momentum stalling, ACC’s retreat highlights how quickly optimism around Europe’s battery boom has given way to caution.
