ACC Puts Factory Plans in Germany and Italy on Hold

Battery joint venture ACC, backed by Stellantis and Mercedes, has suspended work on its cell factories in Germany and Italy. According to ACC, the reason is a switch to cheaper batteries as a result of falling demand for electric vehicles. Specifically, the projects in Termoli, Italy, and Kaiserslautern, Germany, are affected. Meanwhile, production is being ramped up at the companyʼs first plant in northern France.

Adapting to market conditions

Stellantis CEO Carlos Tavares claims the companyʼs investment plans for electric vehicles must be adapted to the growth in market demand. ACC plans to develop lower-cost batteries in order to offer electric vehicles at lower prices. The company intends to publish a timetable for industrial production and further construction in late 2024 or early 2025. Stellantis owns 45% and Mercedes 30% of ACC. The remaining 25% is owned by Saft, the battery division of TotalEnergies. Mercedes said in a statement that it remains committed to ACC and that the companyʼs electrification strategy is on track.



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