Automotive Cells Corporation (ACC), a European battery manufacturer supported by automotive giants Stellantis and TotalEnergies, has officially suspended its plans to establish large-scale battery factories in Italy and Germany. According to the Italian metalworkers’ union UILM, this decision comes in light of a decrease in projected demand for electric vehicles, which is not meeting initial expectations. The halt of these so-called gigafactories in Termoli and Germany represents a significant shift in ACC's strategy as they reevaluate their projects amid changing market conditions.

ACC’s top management communicated their decision to the union, confirming long-standing fears regarding the viability of the Termoli project, which had been hoped to be a key site for battery production in Europe. The company’s announcement indicates that the initial assumptions that could potentially allow for the revival of these projects are no longer valid, underscoring the unpredictability of the electric vehicle market. This pause on expansion is particularly relevant as Europe aims to diminish its dependence on Chinese manufacturers dominating the sector.

The postponement of these ACC factories was part of a broader strategy to bolster battery production across Europe, aligning with the continent's aspirations to enhance its manufacturing capabilities and sustainability efforts. As the demand for electric vehicles grows, stakeholders will likely be watching closely to see how ACC and similar companies adapt to changing market dynamics and what this means for European automotive production in the long term.