Finance
Stellantis-backed ACC drops plans for Italian, German gigafactories, union says
Published by Global Banking & Finance Review®
Posted on February 7, 2026
2 min readLast updated: February 7, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 7, 2026
2 min readLast updated: February 7, 2026
ACC, backed by Stellantis, has shelved plans for gigafactories in Italy and Germany due to low EV demand, causing Stellantis shares to drop significantly.
ROME, Feb 7 (Reuters) - The Stellantis-backed Automotive Cells Company (ACC) told unions it had shelved plans to build gigafactories in both Italy and Germany, the Italian metalworkers' union UILM said in a statement on Saturday.
ACC, a battery joint venture in which Stellantis is the largest investor, had plans for three gigafactories in Europe -- in France, Germany and Italy.
However, UILM said ACC management had informed them that the planned projects for Termoli, in Italy, and Kaiserslautern, in Germany, had been "definitively shelved".
ACC said in a subsequent statement on Saturday that the projects in Germany and Italy had been on standby since May 2024 and added that the "prerequisites" to restart them were not expected to be met.
"While different scenarios are being assessed, we have begun constructive dialogue with works council representatives in Germany and with unions in Italy to work on ... any possible discontinuation of the Kaiserslautern and Termoli gigafactory projects," it said.
Stellantis shares plunged 25.2% on Friday, their biggest single-day drop on record, after the Franco-Italian company booked charges of around 22.2 billion euros ($26.5 billion) as it scaled down electric-vehicle development plans.
ACC, which is owned by Stellantis, Mercedes-Benz and TotalEnergies, has started production at a plant in France, but put on hold the Italian and German projects amid lacklustre demand for electric vehicles.
UILM said Stellantis had previously outlined plans for the production of gearboxes and engines at Termoli but had not provided operational details.
"The failure to build the ACC gigafactory must in fact be offset by clear and coherent industrial decisions," UILM said.
(Reporting by Crispian Balmer and Giulio Piovaccari; Editing by Aidan Lewis)
A gigafactory is a large-scale facility designed for the production of batteries, particularly for electric vehicles, aiming to significantly increase battery production capacity.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits and risks.
Battery production refers to the manufacturing process of creating batteries, which are essential for powering electric vehicles and various electronic devices.
Electric vehicles (EVs) are automobiles that are powered by electric motors instead of traditional internal combustion engines, using batteries as their energy source.
Market response refers to how investors and consumers react to changes in a company's performance or news, often reflected in stock prices and market sentiment.
Explore more articles in the Finance category
