The Automotive Cells Company (ACC), the battery cell joint venture between Stellantis, Mercedes-Benz, and TotalEnergies, appears to be on the verge of permanently closing its factory in Termoli, Italy. An announcement could be made in a matter of weeks.
The decision is imminent and could be officially announced by the end of this year or in the first few months of 2026, reports the Italian newspaper Milano Finanza (MF). According to unspecified sources, management has concluded that the project is “no longer profitable due to technical, financial, and strategic difficulties that are slowing growth,” MF writes.
Stellantis CEO Antonio Filosa reportedly stated during his October visit to Italy that, as the largest shareholder, Stellantis expects a decision from ACC by the end of the year. An ACC spokesperson told Milano Finanza that there was no new information.
Uncertainty reigns
Over the past year and a half, it has become increasingly uncertain whether the cell factory announced in 2022 will actually be built at the Stellantis engine plant in Termoli. The same applies to the factory also planned in Kaiserslautern.
Work on both sites was put on hold in June 2024 when ACC revised its strategy, and a switch to a different cell chemistry was on the cards. When, months later, there was still no commitment to the Termoli plant, the Italian government withdrew its funding commitment in September 2024.
TotalEnergies, as an ACC shareholder, also openly questioned the need for additional ACC battery factories in February and decided to focus on the only operating ACC cell factory in Douvrin, France.
Not competitive enough
But things are not going smoothly in Douvrin either. Milano Finanza reports rejection rates of 15-20%, which means reduced capacity to supply battery packs to Stellantis, currently ACC’s only customer.
“According to internal data, the plant will not be able to deliver more than 15,000 to 20,000 battery packs in the last four months of the year, a level that is well below expectations, while production costs are 20 to 25% higher than those of its Asian competitors,” the report states.
All in all, this is likely to have contributed to Stellantis seeking alternatives to ACC to obtain battery cells from European production. In December 2024, the carmaker and Chinese battery market leader CATL confirmed the construction of an LFP (lithium-iron-phosphate) battery factory in Spain.
According to Milano Finanza, the foundation stone for the battery factory is now scheduled to be laid in Zaragoza at the end of November. Instead of Termoli, Stellantis is likely to obtain its cheaper LFP cells from Zaragoza, although with a different partner.
