Automotive Cells Company (ACC), a leading battery manufacturer backed by Stellantis and Mercedes-Benz, has announced a temporary halt to its planned factory construction in Germany and Italy. This strategic move comes as a response to the slowing growth of the European electric vehicle (EV) market, prompting ACC to prioritise research and development of more cost-effective battery solutions.
The decision reflects the current economic climate, where high interest rates and reduced government subsidies have led consumers to reconsider their EV purchases, often opting for hybrid or traditional petrol vehicles instead. This shift in consumer behaviour has placed added pressure on European manufacturers, who are also facing increased competition from Chinese companies utilising cheaper lithium iron phosphate (LFP) batteries.
ACC aims to adapt to these market dynamics by focusing on developing lower-cost batteries that can enable the production of more affordable EVs. The company has stated it will re-evaluate its industrial and construction timeline towards the end of 2024 or early 2025.
Stellantis CEO Carlos Tavares emphasised the company's commitment to adjusting investment plans in line with EV market growth, highlighting the importance of responding to evolving consumer demand.
Despite this temporary setback, ACC remains committed to its long-term electrification strategy, with its first factory in northern France currently ramping up production. The company's decision to pause expansion reflects a proactive approach to navigating the challenges of the current EV market, ensuring it can continue to deliver innovative and competitive battery solutions in the future.
