ACC, a joint venture backed by Stellantis and Mercedes, pauses factory projects in Germany and Italy to focus on low-cost batteries.
ACC, a battery joint venture of Stellantis and Mercedes, has put a hold on its factory projects in Germany and Italy. The company aims to develop lower-cost batteries to meet the demand for more affordable electric vehicles. ACC stated that it will finalize its industrial and construction plans by late 2024 or early 2025.
ACC's plans include building a factory in Termoli, Italy, and another in Kaiserslautern, Germany, while ramping up production at its first factory in northern France. The slowdown in Europe's EV market, driven by high interest rates and reduced government subsidies, has shifted consumer preference towards hybrids or petrol cars.
Stellantis is also collaborating with China's CATL to establish an LFP battery production plant in Europe. "We are going to adjust our investment plans on EVs to the pace at which market sales of EVs grow," said Stellantis CEO Carlos Tavares. "We do not control that speed," he added.
Mercedes remains committed to ACC and its electrification strategy, despite the current market challenges. ACC is 45%-owned by Stellantis, with Mercedes holding a 30% stake, and Saft, a battery subsidiary of TotalEnergies, owning 25%.
