NextFin News - In a move that underscores the deepening crisis within the European electric vehicle (EV) supply chain, Automotive Cells Company (ACC) has officially informed labor unions of its decision to scrap plans for two major battery gigafactories in Italy and Germany. The announcement, made on February 7, 2026, marks the definitive end of projects in Termoli and Kaiserslautern that were once hailed as the cornerstones of Europe’s industrial response to Asian battery dominance. ACC, a joint venture backed by Stellantis, Mercedes-Benz, and TotalEnergies, cited a failure to meet the necessary "prerequisites" for the projects, effectively shelving billions of euros in planned investment.
The decision follows a turbulent period for the consortium’s lead shareholder, Stellantis. On February 6, 2026, Stellantis shares plummeted by 25.2%—the largest single-day drop in the company’s history—after it booked massive exceptional charges of approximately 22.2 billion euros. These charges were largely attributed to a radical downward revision of the group’s 100% electric ambitions and a pivot back toward internal combustion and hybrid technologies. According to the Italian metalworkers’ union UILM, the management of ACC confirmed that the expansion plans, which had been on "standby" since May 2024, are now permanently terminated. While ACC’s first plant in Douvrin, France, remains operational, it has reportedly struggled with rejection rates as high as 20%, further straining the venture’s financial viability.
The collapse of these projects represents a structural shift in the European automotive landscape. The original vision for ACC was to create an "Airbus of batteries," a pan-European champion capable of insulating the continent’s automakers from the supply chain volatility of China and South Korea. However, the reality of 2026 has proven far more hostile. European EV sales have stagnated as consumers push back against high price points and inadequate charging infrastructure. Furthermore, the rapid rise of Lithium Iron Phosphate (LFP) battery chemistry—a field dominated by Chinese giants like CATL—has rendered the high-nickel NMC (Nickel Manganese Cobalt) cells originally planned for the ACC factories economically uncompetitive for the mass market.
Data from industry analysts suggests that production costs at ACC’s French facility are currently 20% to 25% higher than those of its Asian rivals. This cost disparity has forced Stellantis and its partners to seek more pragmatic, albeit less "sovereign," alternatives. For instance, Stellantis recently confirmed a partnership with CATL to build an LFP battery factory in Spain, effectively choosing established Chinese technology over the homegrown innovation promised by ACC. This shift suggests that the dream of a fully independent European battery ecosystem is being sacrificed at the altar of price parity and corporate survival.
The social and political fallout is expected to be severe. In Italy, the Meloni government had already withdrawn a 200-million-euro funding commitment for the Termoli plant in late 2024 after ACC failed to provide a clear timeline. Now, with the project officially dead, the focus shifts to labor stability. Stellantis has stated it remains "fully mobilised" to assess the social implications and has offered continued employment within its existing engine and gearbox operations in Termoli for current ACC staff. However, the loss of high-tech "green" jobs is a blow to the industrial modernization plans of both Rome and Berlin.
Looking ahead, the failure of the ACC expansion serves as a cautionary tale for the broader European Green Deal. As U.S. President Trump continues to emphasize domestic manufacturing and potential tariffs on imported components, European automakers find themselves caught between a slowing domestic transition and a global price war. The trend for the remainder of 2026 is likely to see further consolidation and a retreat from ambitious "gigafactory" targets in favor of smaller, more flexible production hubs and increased reliance on joint ventures with established Asian technology leaders. For Europe, the path to battery sovereignty has never looked more uncertain.
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