ACC shelves Termoli gigafactory – unions push for mechanical production
Automotive Cells Company (ACC), the European battery cell joint venture owned by Stellantis, Mercedes‑Benz and TotalEnergies, has officially abandoned plans for a gigafactory at the Stellantis Termoli plant in Italy. The decision also affects ACC’s planned site in Kaiserslautern, Germany.
ACC had planned a network of gigafactories in Europe, supplying lithium‑ion cells for electric vehicles. Production has started at the French site in Billy‑Berclau/Douvrin, while the Termoli and Kaiserslautern factories were put on hold in 2024 due to market and cost reassessments.
The Italian metalworkers’ union UILM confirmed that ACC management stated the Termoli project is “definitively shelved”.
"ACC management confirmed to us this morning what we've long feared: that ACC's plan to build a Gigafactory in Termoli has been definitively shelved, as has the case in Germany,” the union wrote in a statement.
The decision follows broader funding and policy developments. In 2024, the Italian government reallocated EUR 200 million in EU funds away from ACC after the company failed to provide a clear timeline for the Termoli plant. ACC indicated that investment would be revisited in 2025 if viable battery projects and customer commitments could be secured.
Analysts point to weak European EV demand as a key factor behind the cancellations. Stellantis and its partners have scaled back expansion outside France, raising questions about Europe’s ability to build a competitive battery supply chain independent of Asian producers.
The shelving of Termoli highlights the challenges facing European battery projects and underlines the need for clear industrial strategies amid evolving EV demand and competitive pressures.
