Italian metalworkers’ union UILM announced on Saturday that European car battery venture Automotive Cells (ACC) has shelved plans to build battery gigafactories in Italy and Germany.
“ACC management has confirmed this morning what we have feared for many years: ACC’s plans to build a mega-factory in Termoli, as in Germany, have been decisively shelved,” the union said in a statement.
ACC, which is backed by auto giant Stellantis, said it was considering canceling the project, which has been on hold since 2024, as growth in electric vehicles slows more than expected.
ACC’s new site was one of dozens of battery projects floated in Europe aimed at reducing dependence on market-dominating Chinese manufacturers, but were scrapped as the company considered moving to cheaper battery technology.
ACC said: “It is clear that the prerequisites for restarting ACC’s projects in Germany and Italy are not yet in place.”
The company was in talks with the union over “measures towards the potential closure of the Kaiserslautern and Termoli gigafactory projects.”
ACC is a partnership with French energy giant Total Energy, Germany’s Mercedes-Benz, and American/European automaker Stellantis, which produces a wide range of brands including Peugeot, Fiat, and Chrysler.
Stellantis, Europe’s second-biggest carmaker, warned on Friday it would take a 22 billion euro hit as the uptake of electric cars was slower than expected.
The admission of a “significant overestimation” of EV demand comes after U.S. and European authorities eased tough emissions targets after years of pushing for cleaner vehicles.
Italy announced in September 2024 that it would withdraw some 250 million euros in European Union funds originally earmarked for the Gigafactory, amid uncertainty over the project’s schedule.