Stellantis NV (NYSE:STLA, EPA:STLA) and Mercedes-Benz have paused their European gigafactory plans due to slowing electric vehicle (EV) sales and rising costs.
Automotive Cells Company (ACC), their joint venture with Total Energies, halted battery plant construction in Germany and Italy. ACC initially aimed to build three gigafactories to reduce European dependence on Asian suppliers.
Stellantis CEO Carlos Tavares indicated investment adjustments will align with EV market growth. ACC's €7 billion plan included sites in Germany, Italy, and France, each employing 2,000 workers.
ACC is reassessing its Kaiserslautern project, potentially introducing cheaper lithium-iron-phosphate batteries.
Plans for the Termoli site will be revisited in late 2024 or early 2025.