Key Points
- Tesla is investing hundreds of millions more into its German gigafactory.
- The company plans to produce up to 8 GWh of its own battery cells there annually, starting in 2027.
- The investment aims to create an all-in-one factory that manufactures everything from cells to cars on-site.
- This move is designed to strengthen Tesla’s supply chains in Europe.
Tesla is investing hundreds of millions of euros more in its German gigafactory, with ambitious plans to begin producing its own battery cells there by 2027. The U.S. automaker announced on Tuesday that it is setting up the factory to produce up to 8 gigawatt hours of cells annually, bringing its total investment in the battery plant to nearly 1 billion euros.
The move is a major step toward creating an all-in-one manufacturing hub where Tesla can produce everything from battery cells to finished vehicles under one roof. “This is unique in Europe and also strengthens the resilience of our supply chains,” the company said in a statement.
Tesla also acknowledged the tough competition it faces, stating that it is “currently hardly possible to produce cells economically in Europe” when compared to China and the USA. This major investment is a clear strategy to overcome that challenge and build a more self-reliant European operation.
The expansion is underway at Tesla’s only European factory in Gruenheide, near Berlin, which currently employs around 11,500 people.
The move comes at a critical time for the company, which has seen its market share erode amid fierce competition from other electric vehicle makers.
