The decision follows a broader pause as ACC weighs moving to a less-expensive battery technology and assesses restart prerequisites.

The Termoli EU funding withdrawal was tied to uncertainty over the project timetable.

ACC, the Stellantis-backed European vehicle battery venture, has informed unions it is shelving planned gigafactories in Termoli, Italy, and Kaiserslautern, Germany due to slower EV uptake and unresolved restart prerequisites.

ACC has definitively paused plans for Termoli and Kaiserslautern, with discussions underway on potential shutdown modalities for the projects.

Unions say prerequisites to restart the Italian and German sites are unlikely to be met, and ACC is weighing different restart scenarios.

The move fits a broader pattern of reevaluations in European battery investment as market conditions and policy dynamics evolve.

The decision aligns with ACC’s broader strategy to scale battery production across Europe, though specific locations and timelines remain uncertain.

The pause follows months of hold since 2024, with neither site currently having restart prerequisites in place, according to ACC and unions.

Plans for the German and Italian factories had been on standby since May 2024, reflecting a prolonged development pause.

Termoli faced funding uncertainty, with about €250 million of EU funds earmarked for the gigafactory withdrawn by Italy amid timetable doubts.

Italy previously redirected roughly €250 million in EU funds from Termoli due to timetable uncertainty as of late 2024.

Growth in EV demand has been slower than anticipated, contributing to the pause and ongoing internal assessment at ACC.