Tesla is making significant strides in its European manufacturing efforts with a new investment at Gigafactory Berlin that will enable the production of up to 8 gigawatt-hours of battery cells per year by 2027. This move is part of Tesla’s push towards vertical integration and solidifying its presence in the European market.
According to a statement to Reuters, Tesla is committed to creating the necessary conditions to achieve this production milestone at its factory in Grünheide, near Berlin. The company is investing a substantial amount of capital, nearing €1 billion, to support local cell production. This investment underscores Tesla’s dedication to its 4680 battery cells, which have become a focal point of its long-term manufacturing strategy.
Tesla’s goal at Gigafactory Berlin is full vertical integration, with plans to produce everything from battery cells to vehicles at a single location. This approach is seen as a unique and resilient supply chain strategy, with the potential for the entire battery value chain to be localized in Gruenheide in the future.
The announcement comes at a significant moment for Gigafactory Berlin, which recently celebrated its sixth anniversary and employs approximately 11,500 people. The factory has achieved notable milestones, including producing over 500,000 Model Y vehicles as of March and reaching 100,000 refreshed Model Ys by August.
Tesla has been steadily increasing its activities at the site, with plans to ramp up Model Y production and open a new research and development center nearby in the coming years. With battery cell production, vehicle manufacturing, and R&D all centralized in one location, Tesla is making a bold statement about its commitment to Giga Berlin and its position in the competitive European EV market.
Overall, Tesla’s latest investment in Gigafactory Berlin signifies a significant step towards achieving its long-term manufacturing goals and solidifying its presence in Europe’s evolving electric vehicle landscape.