Tesla Bets Big on Battery Manufacturing in Germany

Tesla has restarted efforts to build battery manufacturing operations at its factory in Grünheide, Brandenburg. The move follows recent reports that the company had delayed plans to produce battery cells and reflects a broader strategic shift. Tesla aims to pave the way for full-cycle battery production in Germany, with investments approaching €1 billion.

Under the plan, the facility near Berlin will be equipped to produce up to 8 gigawatt-hours of battery cells per year starting in 2027—enough to supply roughly 13,000 electric vehicles. At present, the plant manufactures only battery components, while the cells themselves are imported from the United States. Tesla’s long-term goal is to consolidate the entire battery value chain—from cell production to finished vehicles—at a single site, strengthening supply resilience and creating a setup that would be unique in Europe.

Plant manager André Thierig said the expansion, which will take place within the existing footprint of the factory, is expected to create several hundred new jobs in the coming months. The site currently employs around 11,000 people. Thierig also noted that all required permits have already been secured and that the launch of cell production will not increase the plant’s water consumption.

According to Tesla, the decision to localize battery cell production in Germany was an independent strategic choice and not driven by political considerations. It comes despite the fact that, amid intense global competition, battery manufacturing in Europe is currently seen as a challenging business case. Opened in 2022 to produce the Model Y, the Grünheide plant is now taking a step toward a more ambitious role—as a major hub for battery production.