Mercedes and Stellantis Halt EU Battery Factories, Consider Cheaper LFP Technology

The joint venture Automotive Cells Company pauses construction in Germany and Italy to evaluate market shifts and potential cost-saving measures.

ACC has stopped work on battery factories in Kaiserslautern, Germany, and Termoli, Italy.
The company is considering a switch to lithium iron phosphate (LFP) cells, which are less expensive but have lower energy density.
ACC cites slower-than-expected EV demand growth in Europe as a factor in their reassessment.
LFP cells are seen as a viable option for mass-market EVs, particularly as Western automakers face competitive pressure from Chinese manufacturers.
The decision on the future of the paused factories is expected by the end of the year.