The Automotive Cells Company (ACC), the battery cell joint venture created by Stellantis, Mercedes-Benz and TotalEnergies, is close to deciding whether to permanently halt its planned factory in Termoli, Italy, according to Italian business daily Milano Finanza. A formal announcement could come within weeks, the newspaper reported, citing people familiar with the matter.
The decision may be communicated before the end of 2025 or in early 2026. According to Milano Finanza, internal assessments suggest the project is “no longer profitable due to technical, financial and strategic difficulties that are slowing growth.” Stellantis CEO Antonio Filosa reportedly told officials during a visit to Italy in October that, as ACC’s largest shareholder, Stellantis expects a final decision from the venture by year-end. An ACC spokesperson told the paper there was no new information available.
Doubts over the Termoli plant have mounted for more than a year. ACC paused development at the Italian site and at a planned factory in Kaiserslautern, Germany, in mid-2024 as it reconsidered its strategy and evaluated a shift in cell chemistry. Continued delays prompted the Italian government to withdraw its funding commitment in September 2024. TotalEnergies also signaled in early 2024 that it was re-evaluating further ACC factories and would focus on the venture’s only operating site in Douvrin, France.
However, production difficulties have also emerged in Douvrin. Milano Finanza reported rejection rates of 15% to 20%, limiting output to an expected 15,000–20,000 battery packs in the final four months of the year—well below targets. According to the report, production costs at the facility are 20% to 25% higher than those of Asian competitors, constraining ACC’s ability to meet Stellantis’ demand. “The plant will not be able to deliver more than 15,000 to 20,000 battery packs,” the paper wrote, citing internal data.
With ACC facing delays and cost pressures, Stellantis has begun seeking alternatives to secure European-made cells. In December 2024, the automaker and China-based battery producer CATL confirmed plans to build an LFP battery factory in Spain. According to Milano Finanza, groundwork for the Zaragoza facility is expected to begin in late November, positioning the site as a potential replacement supplier for Stellantis should Termoli be abandoned.