PARIS, June 4 (Reuters) - ACC, a battery joint venture

backed by carmakers Stellantis ( STLA ) and Mercedes

, has halted plans for factories in Germany and Italy

as the company switches to lower cost batteries amid slowing

demand for electric vehicles.

The company said on Tuesday it needed to research and

develop low-cost batteries to supply cheaper EVs and that it

would renew discussions on its factory in Italy's Termoli in

late 2024 or early 2025.

ACC also confirmed plans to halt construction of a factory

in Germany's Kaiserslautern, first reported by German media Die

Rheinpfalz on Monday.

Growth in Europe's EV market has slowed significantly, with

high interest rates and slashed government subsidies pushing

consumers to opt for hybrids or petrol cars instead.

"We are going to adjust our investment plans on EVs to the

pace at which market sales of EVs grow," said Stellantis ( STLA ) CEO

Carlos Tavares, in response to a question at a media briefing on

whether ACC still plans to build three factories in Europe.

The company is currently ramping up production of its first

factory in northern France.

ACC, is 45%-owned by Stellantis ( STLA ) and Mercedes holds a 30%

stake. Saft, a battery subsidiary of France's TotalEnergies

, owns 25% of the company.