Italy’s industry minister, Adolfo Urso, issued an ultimatum to Stellantis on Thursday, demanding a prompt commitment from the automaker regarding its plan to build a battery-manufacturing facility in the country. Urso warned that if Stellantis does not provide a firm response “within hours,” the government would redirect public funds allocated for the project to other initiatives.
Stellantis is the largest stakeholder in ACC, a battery joint venture that aims to establish three gigafactories in Europe. However, earlier this year, ACC announced that it was halting work on two of these factories, including one in Italy and another in Germany, due to a shift towards lower-cost batteries and decreased demand for electric vehicles.
“Stellantis must give us a reply, and it must do so shortly,” Urso stated during a conference in Rimini. “If Stellantis does not give us a positive feedback within hours, we’ll move … funds elsewhere. We can’t afford to lose these funds because Stellantis is not sticking to its commitments.”
The proposed Italian gigafactory, which would repurpose a Stellantis engine plant in Termoli, involves an estimated investment of around €2 billion, including €370 million in public funding from the EU’s post-COVID recovery plan.
In a statement released later on Thursday, the company noted that ACC is currently revising the Termoli gigafactory plan, as well as the German facility, to incorporate new technology for cell and module production in response to market changes. Meanwhile, the company has made decisions to increase the production of components for hybrid engines at the Termoli site.
The Termoli gigafactory was originally scheduled to begin operations in 2026. ACC, which counts Mercedes and Total Energies among its shareholders, has indicated that it will confirm the industrial and construction timeline for the gigafactory later this year or by early 2025.
Urso, who has frequently criticized Stellantis, Italy’s only major automaker, for its limited vehicle production in the country, added that the government would consider alternative public funding to support the Termoli gigafactory if it eventually confirms its commitment.
