ACC refused to build battery gigafactories in Italy and Germany
The joint venture ACC, created with the participation of Stellantis, Mercedes-Benz, and TotalEnergies, has finally abandoned plans to build battery gigafactories in Italy and Germany.
What is known
The projects, frozen back in May 2024, will not be resumed: the company stated that it does not see conditions for their restart and will focus on increasing production efficiency in France.
The decision was first reported by Italian trade unions. According to them, the plant in Termoli is completely excluded from ACC's plans, as is the project in Germany. The unions are demanding urgent negotiations with the participation of the authorities amid a sharp decline in car production in Italy.
The closed projects were part of a large-scale program for the development of European battery production, aimed at reducing dependence on Chinese suppliers, including CATL. However, ACC faced high costs: production costs at the French plant are 20-25% higher than those of Asian competitors, and the defect rate reaches 15-20% with an industry standard below 10%.
The decision coincided with a review of Stellantis' electric vehicle strategy. On February 5, the company announced write-offs of about $26.5 billion, mainly related to unprofitable EV projects, and warned of a possible shortfall of up to $1.5 billion in the second half of the year.
Italy had previously withdrawn about $295 million of European funding for the Termoli plant due to uncertain timelines. Stellantis claims it is seeking alternatives for the region, including the launch of an e-DCT transmission production line and investments in engines that meet Euro 7 standards. ACC employees were promised jobs within the group.
Source: Automotive World
