Italy Diverts EU Funds as Stellantis Shifts Battery Plan

Italy has redirected 200 million euros earmarked for Stellantis' battery factory project in Termoli. The company's joint venture, ACC, is pausing construction on European gigafactories due to a slower transition to electric vehicles. The funds will support other green investments, maintaining current employment at Termoli.

Italy's government has decided to reallocate 200 million euros in EU funds that were initially planned for Stellantis' battery-manufacturing facility in Termoli, officials confirmed Tuesday.

ACC, a battery joint venture involving Stellantis, Mercedes, and TotalEnergies, announced halts in the construction of gigafactories in Italy and Germany due to a shift towards lower-cost electric vehicle batteries amid slowing demand.

Industry Minister Adolfo Urso stated that the reallocated EU funds will support investments in line with Italy's green energy strategy. Additional national subsidies may be considered if ACC presents a viable industrial plan in the future. Stellantis reassured continued production of endothermic engines in Termoli and job stability during the transition.

(With inputs from agencies.)