Stellantis and ACC may abandon battery plant project in Italy (Termoli)

The news broke last night via Milano Finanza, and it resounds like a thunderclap in the Italian automotive industry: Automotive Cells Company (ACC), the joint venture between StellantisTotalEnergies and Mercedes, is said to be on the verge of definitively abandoning its planned gigafactory in Termoli, Molise. A prospect confirmed months later, the concerns we were raising about the future of the plant.

Termoli project on the brink of abandonment: almost official confirmation

According to information gathered by Milano Finanza, ACC has all but made up its mind.
The reasons given? Technical difficulties, financial fragility, a losing strategy, and major delays in ramping up the pilot site at Douvrin, France.

The French plant, operational since 2024, suffers from scrap rates of 15 to 20 %, production limited to 15,000-20,000 packs over the last quarter of 2025, and costs 20 to 25 % higher than those of Asian competitors. An untenable industrial equation.

These obstacles are compounded by a technological shift: ACC remains positioned on NMC (nickel-manganese-cobalt) batteries, while Stellantis now prefers to accelerate on LFP technology, which is simpler, more robust, and above all 20 % less expensive, thanks to its new alliance with Chinese giant CATL. Result: Zaragoza in Spain advances, Termoli in Italy regresses.

In Spain, the Stellantis-CATL gigafactory is already under construction

While Termoli stalls, the future LFP plant in Zaragoza is moving ahead at full speed:

• the government of Aragon has given the go-ahead for the work;
• an initial investment of 43 million euros has already been committed;
• The foundation stone will be laid at the end of November 2025;
• total investment will exceed 4.1 billion euros;
• and eventually the plant will be able to produce 1 million LFP batteries a year, with 3,000 direct jobs.

Termoli: a historic plant, an increasingly uncertain future

For Termoli, this latest episode merely confirms a trend that has been underway for over a year: the transition to electric vehicles is unlikely to take place in Molise. In our May 2025 article, we already pointed out that :

• the FIRE 16V engine line was being dismantled;
• production of GSE (FireFly) engines was running well below capacity;
• production of the GME (2.0 turbo) seemed destined for partial relocation to the United States;
• the only remaining project was the eDCT gearbox, scheduled for launch in 2026, with around 300 jobs involved.

Since then, the situation has not really improved. The unions have sounded the alarm, with a demonstration scheduled for November 29. They denounce a "gradual disengagement" and consider that the investments planned for the eDCT are largely insufficient to compensate for the absence of a major industrial vision.

What scenarios for Termoli's future?

If the ACC gigafactory is abandoned, several credible hypotheses emerge for the 2026-2030 period. First, production of the eDCT automatic gearbox. Already confirmed, this will be one of the site's industrial pillars. Reliable, in demand, essential in Stellantis hybrid models: it's a sure bet.

Next, the return of the GME in a hybrid version. With the arrival, from 2027, of new top-of-the-range models on the STLA Large platform (Alfa Romeo, Maserati, Jeep), Stellantis will need a high-performance combustion engine for high-performance hybrids. The new Hurricane 4 Turboan evolution of the GME 2.0L, could perfectly fulfil this role when coupled with a hybrid system.

In addition, the GSE engine will continue its career in the Alfa Romeo Tonale MHEV and PHEV, as well as in the Fiat 500 hybrid, whose production target is 100,000 units per year (and therefore 100,000 engines per year).

Finally, more symbolic but strategic: the Nettuno V6. This exceptional engine, used in the MC20 and other Maseratis, would represent a niche production, but one that would help maintain know-how in Italy. What's more, this engine will soon be offered in a hybrid version and, why not, be used in future Alfa Romeo Quadrifoglio models.

The abandonment of the ACC project is not just bad local news: it also marks the end of an illusion that Italy could soon host a gigafactory competitive with Asian players. On November 29, the unions will make their voices heard. It remains to be seen whether Rome, Stellantis and ACC will finally offer a clear vision for one of Italy's most symbolic automotive plants.