ACC announced that it will no longer pursue its planned gigafactories in Italy and Germany, a decision that follows a two‑year pause of the projects that began in May 2024. The joint venture, which was created in August 2020 by Stellantis and TotalEnergies and later joined by Mercedes‑Benz in 2021, had earmarked the Italian Termoli site and the German Kaiserslautern location as key nodes in a European battery network that would support Stellantis’ goal of 100 % battery‑electric vehicle sales in Europe by 2030.
The shelving comes amid a broader recalibration of Stellantis’ electrification strategy after the company recorded a €22.2 billion ($26.5 billion) writedown in early February, a charge that reflected over‑optimistic assumptions about the pace of EV adoption. The writedown forced a reassessment of capital commitments, leading ACC to confirm that the projects would remain on standby until conditions improve. In addition, ACC is exploring a shift to lower‑cost lithium‑iron‑phosphate (LFP) chemistry, which could reduce production costs and better align with the market’s demand for more affordable EVs.
The decision leaves ACC’s French gigafactory in Le Mans as its only active plant, which is currently struggling with high scrap rates and lower than expected output. ACC has brought in Chinese experts to accelerate ramp‑up and reduce rejection rates, but the challenges underscore the difficulty of scaling battery production in a competitive environment dominated by cheaper Chinese manufacturers. Meanwhile, Stellantis is redirecting the Termoli site to focus on gearbox and engine production, a move intended to preserve the plant’s viability and support the company’s broader powertrain strategy.
In Germany, ACC has begun constructive dialogue with works council representatives to discuss potential discontinuation of the Kaiserslautern project. The company stated that the prerequisites for restarting the site are unlikely to be met in the near term, reflecting both the financial constraints imposed by the writedown and the slower‑than‑expected EV demand in Europe.
The market reacted sharply to the writedown, with Stellantis shares falling 25.2 % on February 6, the day before the ACC announcement. Investors interpreted the writedown as a sign that the company’s aggressive electrification targets were over‑ambitious and that the capital required to achieve them would be harder to secure. The shelving of the Italian and German gigafactories is a tangible outcome of that reassessment, signaling a more cautious approach to battery expansion and a shift toward cost‑efficient technologies.
ACC’s chief executive said the projects had been on standby since May 2024 and that “different scenarios are being assessed” as the company evaluates the feasibility of restarting the sites. Stellantis CEO Carlos Tavares noted that the company remains committed to electrification but will adjust its timeline and mix of technologies to match market realities, emphasizing a focus on LFP chemistry and a more balanced portfolio of battery types.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.