European battery manufacturer Automotive Cells Company (ACC) has warned that slower-than-expected growth in electric vehicle demand is undermining the business case for new battery factories in Europe, urging stronger policy support to safeguard the region’s industrial independence.
In a detailed statement addressed to public authorities and private stakeholders, the company said European automakers face “high uncertainty” due to volatile demand and intense competition from Chinese manufacturers. ACC supplies battery cells to Stellantis and counts Mercedes-Benz among its shareholders, though Stellantis remains the only customer currently sourcing cells from its operational plant in Douvrin, France.
See also: ACC Drops Plans for Battery Gigafactories in Germany and Italy
ACC framed the issue as strategic for Europe’s automotive future. “The future of the automobile is therefore electric. But one crucial question remains: who will manufacture the batteries for European cars?” the company said, warning that reliance on Asian suppliers such as BYD, CATL, and LG Energy Solution could leave Europe dependent on foreign technology.
The company acknowledged that initial optimism about EV growth has given way to caution, affecting its operations. While teams at the Douvrin gigafactory are working to increase output, activity at upstream sites in Bordeaux-Bruges and Nersac has slowed due to delays in future projects, prompting measures such as reduced working hours.
See also: Stellantis Faces EV Delays as ACC Battery Supply Falls Short, Sources Say
ACC also confirmed it has opened discussions about potentially terminating planned gigafactories in Kaiserslautern, Germany, and Termoli, Italy. “Committing to building new Gigafactories in Germany or Italy would be totally irresponsible, in such a context,” the statement said, noting uncertainty about whether new plants would have sufficient demand in the near term.
The existing facility in Hauts-de-France has faced challenges as well. The company said ramp-up has taken longer and cost more than expected, straining finances. However, production performance is improving, with output doubling over the past two months and scrap rates gradually declining as manufacturing processes stabilize.
See also: Stellantis Faces EV Delays as ACC Battery Supply Falls Short, Sources Say
ACC concluded that Europe’s battery sector is at a critical juncture and called for accelerated implementation of industrial policy measures. It referenced recommendations from former European Central Bank President Mario Draghi for large-scale investment in strategic industries, urging policymakers to translate such proposals into concrete funding programs.
