Italian Government Puts Stellantis On Notice: Build Battery Plant Or Lose Funding
Stellantis Battery Joint Venture Delays Plans for Italian and German Plants
- A battery joint venture involving Stellantis has delayed plans for Italian and German plants.
- Without a firm commitment, the automotive group risks losing €370 million in public funding.
- Declining EV demand has pushed Stellantis to focus on hybrid powertrain components.
The Italian government has issued a stern warning to Stellantis that if it doesn’t give a firm commitment to establishing a local battery production plant, public funds will be moved elsewhere.
Stellantis’ Promise and Current Situation
Stellantis had promised to establish a battery factory in Italy through the ACC battery joint venture that it is the largest investor in, alongside two other battery gigafactories in Europe. However, work on plants in Italy and Germany were put on hold earlier this year.
Government Ultimatum
During a recent conference in Italy, industry minister Adolfo Urso said that Stellantis must commit to the project, or else it is at risk of losing €370 million ($411 million) in public funds from the EU’s post-COVID-19 recovery fund. Urso emphasized that the government has been waiting for a response from Stellantis for too long and cannot afford to lose the funds.
ACC’s Revised Plans
ACC, part-owned by Mercedes and TotalEnergies, is revising its industrial and construction timeline for the battery plants in Italy and Germany. The company aims to introduce a new technology for the production of cells and modules to align with the evolving market.
Shift Towards Hybrid Powertrains
Due to slowing demand for electric vehicles, Stellantis has increased its output of components for hybrid powertrains at the Termoli factory in Italy.
Sources: Stellantis, Reuters
