ACCthe joint venture between Stellantis, Mercedes And TotalEnergiesofficially announced the suspension of the project of building an electric car battery factory in Termoli until the end of 2024. This facility, initially planned to be operational by the end of 2026, required a total investment of two billion euros, with 350 million coming from public funding. It should have taken approx 2,000 people and produce 40 GWh of batteries by the end of the decade.
Stop at the Gigafactory for batteries in Termoli and focus on the FireFly engine
The gigafactory in Italy intended for the production of batteries for electric cars was supposed to be built in Termoli but probably will never see the light. The suspension of the project is mainly attributed to the decrease in demand for electric cars. Furthermore, the company has indicated the need to technologically update the batteries to be produced in order to continue the project.
According to Stellantis’ initial plans, the current production of gearboxes and engines it was supposed to end in 2024, while the first battery production would have started in 2026. But in light of the trend of the electric market in Termoli they will still focus on production of heat enginesespecially the FireFly mild hybridwhich will also be mounted on the new one Fiat 500 hybridthat is, the 100% electric 500e converted into thermal.
The reasons for the suspension
The electrification process for Acc proceeds “slower than expected”, especially for battery electric vehicles (BEVs). Among the various factors contributing to this slowdown, the joint venture cites “high prices due to material costs and production and development costs, which create competitive pressures”. Accordingly, industrialization and product development plans must be adapted to market conditions and to the electrification path of Stellantis, which will see a increase in the production of mild hybrid vehicles in Italy and the growth in the production of engines for these vehicles at the Termoli plant. Therefore, the transition will be “gradual”.
The joint venture in justifying its decision also confirmed its intention to “broaden the spectrum of its technologies”starting “a new phase of research and development” to add one low cost chemistry to current batteries. To industrialize these cheaper products, Acc plans to postpone the construction time of Termoli.
Jobs in Termoli
The Termoli gigafactory originally included a training plan for staff at Douvrin, in France. In total the Termoli site would have taken approximately 2,000 workers but the suspension of the project raises questions about the fate of the current jobs, provoking concerns by the unions who define it as unacceptable. In fact, this factory was part of the plans of National Recovery and Resilience Plan (PNRR).
Minister Adolfo Urso in turn announced that he will evaluate with the European Commission whether the changes recently communicated by ACC, including the suspension of construction, are compatible with the terms and conditions of the loan.
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