Stellantis-backed ACC to scrap plans for Termoli gigafactory, newspaper reports

MILAN (Reuters) -The Stellantis-backed ACC joint venture is close to "definitely giving up" plans for a gigafactory plant in eastern Italy, newspaper MF reported on Friday.

A decision for the plant in Termoli, which was earmarked by ACC as one of three European electric vehicle battery-making hubs, is expected by the end of the year or in early 2026, MF added.

The project is "not sustainable for technical, strategic and financial difficulties", the Italian paper reported, citing sources.

The site, which makes petrol engines for Stellantis, was one of three ACC initially planned for Europe.

A plant in France has already started operations while another one in Germany is also on hold due to sluggish market demand for electric vehicles.

ACC - which also has Mercedes and TotalEnergies as shareholders - did not immediately respond to a Reuters request for comment.

(Reporting by Sara Rossi, editing by Giulia Segreti)