Italy to reallocate EU funds earmarked for Stellantis battery gigafactory
- Stellantis-backed JV has paused plants in Italy, Germany
- Rome could use separate funds if Italian plant restarted
- Stellantis CEO says battery capacity depends on EV demand
ROME, Sept 17 (Reuters) – Italy’s government will reallocate some 200 million euros ($223 million) in European Union funds it had previously earmarked for a project led by Stellantis (STLAM.MI), opens new tab to build a battery-making plant in eastern Italy, officials said on Tuesday.
ACC, a battery joint venture in which Stellantis is the largest investor, had plans for three gigafactories in Europe – at sites in France, Germany and Italy.
In June it said it was halting works on those in Italy and Germany, as the company switches to lower cost batteries amid slowing demand for electric vehicles.
A number of European companies have invested in lithium-ion battery production, but growth in EV demand is developing more slowly than some in the industry had projected, and competition is stiff from battery producers and automakers in Asia and North America.
Stellantis CEO Carlos Tavares said on Tuesday during a corporate event in Turin, Italy.
We have of course to schedule the capacity increase in accordance with the cell’s (demand) ramp up,
he said,
As soon as EV sales increase in Europe, as soon as I see that I need more capacity, I will trigger the investment of the two additional plants in Germany and Italy,
ACC on Tuesday confirmed uncertainty over the timing of the construction of the gigafactories in Germany and the Italian city of Termoli in a meeting at the industry ministry, the government officials said.
talian Industry Minister Adolfo Urso said he would use the EU funds to support separate investments consistent with Rome’s energy strategy to make its economy greener.
Italy set aside 200 million euros from the EU’s post-COVID recovery funds for the gigafactory and pledged to earmark additional 200 million euros in national and regional funds.
The minister added that separate domestic state money could be earmarked should ACC be able to present a new industrial plan for Termoli at a later stage.
The joint venture said, The availability of national public subsidies
is critical to support the competitiveness of ACC’s investment in Italy,
During the discussions, Stellantis assured the government that it would continue to produce endothermic engines in Termoli, keeping the current employment levels, in view of the transition towards the gigafactory.
($1 = 0.8977 euros)
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Italy to reallocate EU funds earmarked for Stellantis battery gigafactory, source
