Stellantis JV ACC Shelves Two Gigafactories, Redirects Focus to Dunkirk Plant
Automotive Cells Company has shelved plans for two gigafactories in Italy and Germany, halting expansion of new European battery capacity. ACC will concentrate investment on its Dunkirk plant after encountering delays in public funding and changes in EV demand.
1. ACC Suspends Italy & Germany Gigafactories
Automotive Cells Company, the joint venture backed by Stellantis, TotalEnergies and Mercedes, has indefinitely paused its planned gigafactory developments in Termoli, Italy and Kaiserslautern, Germany. The two facilities were intended to expand ACC’s European battery production footprint by introducing new cell capacity.
2. Funding Delays and Market Dynamics
ACC cited delays in securing government subsidies and evolving electric vehicle demand as primary reasons for shelving the Italy and Germany plants. The shift reflects broader challenges in aligning public funding timelines with aggressive capacity rollout targets across the European EV battery sector.
3. Focus on Dunkirk Operations
The company will redirect investment toward its existing Dunkirk manufacturing site, which forms the core of ACC’s current production network. Management views the Dunkirk plant as essential for near-term output and as a platform for potential future scale-up.
4. Implications for Stellantis EV Strategy
The postponement may constrain Stellantis’s ability to source domestically produced cells for its upcoming EV models, potentially increasing reliance on external suppliers beyond 2028. ACC executives indicated they remain open to revisiting the Italy and Germany projects if funding frameworks improve.