European industry is fighting for its technological sovereignty, but a key major battery project is in danger of failing. At the heart of the matter is the Automotive Cells Company (ACC), a joint venture between Stellantis, Mercedes-Benz, and TotalEnergies. Following the turmoil at Northvolt, this collaborative project in Italy is now under scrutiny. The situation demonstrates that the foundation for electromobility and cell production appears unstable, increasing economic uncertainty and reinforcing the looming investment freeze. This uncertainty is growing as Europe stands at a critical juncture in its industrial policy. (handelsblatt: 14.11.25)
Second major battery project teeters on the brink of collapse
In Termoli, chaos reigns over the debate surrounding the plant’s future. While engine production continues, the planned conversion to a battery cell center is in danger of failing. Insiders report “technical, strategic, and financial difficulties.” This description suggests not minor hurdles, but rather structural flaws. The consequences extend far into European electromobility, as the lack of stable cell production will increase the pressure on manufacturers.
The delays are increasing the risk of a new industrial crisis. At the same time, weak market dynamics are leading to a gradual investment freeze that threatens the entire model. While the team is trying to explore alternatives, the economic burden is growing faster than the solutions being developed.
Europe in repeat mode: Second major battery project falters
Following Northvolt, ACC is now facing a similar situation. Both projects demonstrate that European cell production is not structured robustly enough. The delays in France, Germany, and Italy reflect a lack of coordination and an environment where political goals and economic realities are diverging. The companies involved are pursuing different strategies, but these divergences are undermining progress.
While Mercedes is focusing on high-quality cell technology and Stellantis is prioritizing costs, TotalEnergies is pursuing energy integration. These divergent approaches are weakening industrial cohesion. The result: a continent that risks losing one strategic major battery project after another.
Termoli as the focal point of an impending economic crisis
The region around Termoli is heavily dependent on production. Failure would not only have economic consequences but also create social tensions. The planned transformation requires precise planning and strong demand. However, the current situation in electric vehicle transport shows that the forecasts of recent years were overly optimistic. Declining sales figures are triggering a chain of decisions that are pushing the site into a precarious situation.
Rising costs, decreasing planning certainty, and political uncertainty are creating an explosive environment. A financial blockage is spreading as investors become more cautious. This increases the risk that Termoli will go down in history as an example of a failed large-scale battery project.
Kaiserslautern Confirms the Pattern of Failure
The German site is also exhibiting an almost identical dynamic. Kaiserslautern is experiencing a period of stagnation. The original plans are on hold because the electromobility market lacks a clear growth trajectory. Analysts confirm that Europe has reached its limit. This uncertainty is leading to an extended investment freeze, which is also affecting long-term expansion plans. This is creating a domino effect that is putting massive pressure on European cell manufacturing.
Conclusion: Europe is threatened with the loss of its industrial sovereignty
Following Northvolt, ACC demonstrates just how vulnerable Europe’s industrial core truly is. Two key projects are faltering simultaneously. The risk of a deep industrial crisis is increasing. Without decisive action, the vision of an independent European cell industry will crumble. The fate of this major battery project will thus determine the industrial future of an entire continent.