ACC Scraps German and Italian Gigafactory Plans

Automotive Cells Company (ACC) has officially abandoned its gigafactory projects in Kaiserslautern, Germany and Termoli, Italy. The joint venture between Stellantis, Mercedes-Benz and TotalEnergies is now concentrating all efforts on its French Billy-Berclau/Douvrin site, where production is set to ramp up by 2026.

"ACC management confirmed to us this morning what we've feared for a long time: the plan to build an ACC gigafactory in Termoli has been definitively abandoned, just like the one in Germany" — Italian UILM metalworkers union

Two projects erased

ACC formalized the abandonment of its two European gigafactories after putting them on hold in May 2024. The company stated that "the prerequisites for relaunching ACC projects in Germany and Italy are not in place." A verdict that ends ambitions first announced in 2020.

The Italian metalworkers union UILM was most direct in confirming the halt was "definitive" for both sites. ACC has opened discussions with staff representatives to organize the "potential shutdown arrangements" for the Kaiserslautern and Termoli projects.

Stellantis under pressure

The announcement comes right after massive strategic revisions at Stellantis, which holds 45% of ACC's capital. The Franco-Italian-American automaker recently announced exceptional charges of 22 billion euros after overestimating the pace of electric vehicle sales.

Carlos Tavares and his teams are "closely monitoring the situation and remain fully mobilized to assess its industrial and social implications," according to a group statement. A cautious position that barely masks current economic difficulties.

What happens to Termoli's plant?

The Italian site isn't closing outright. Emanuele Cappellano, Stellantis Europe director, confirmed the plant will continue producing petrol engines "until 2030 and beyond." These powertrains will be adapted to Euro 7 standards.

This pivot enables "operational continuity of the site, associated with key production for the company's future," according to Cappellano. A way to reassure the 2,500 employees at the Italian site worried about their futures.

France, the only survivor of the original plan

ACC's original plans included three production sites with 8 GWh capacity each. Now, only the French Billy-Berclau/Douvrin site in Pas-de-Calais remains viable. Its capacity will actually be increased with two lines of 13 GWh and 15 GWh, totaling 28 GWh annually.

French production is set to begin in summer 2025 to supply electric models for Stellantis and Mercedes-Benz. A tight timeline that concentrates all the joint venture's hopes on a single site.

Europe loses two strategic gigafactories

This abandonment is a serious blow to European autonomy in battery production. With German and Italian projects cancelled, Europe loses two strategic sites facing Asian sector dominance. Cells will continue flowing mainly from China and South Korea.

European battery demand remains solid despite the slowdown in electric vehicle sales. But ACC prefers to bet on ramping up its French site rather than spreading investments across three countries.

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