Tesla Investing Billions in Battery Factory Near Giga Berlin
Tesla has started progress on its giant battery factory near Giga Berlin according to multiple sources familiar with the matter. Tesla plans to invest about $8 Billion dollars into this battery factory, comparable with the investment in the Giga Berlin auto factory.
The World's Largest Battery Factory
Tesla is making a very large investment in batteries for the development of this factory and the batteries within. Tesla is going to need these batteries in order to flood the European market with its vehicles.
Elon Musk thinks it will possibly be the largest battery cell plant in the world. When it reaches 250 GWh, it will likely be the biggest battery factory plant in the world, surpassing all others, including the 3rd party companies Tesla gets its batteries from, which includes CATL.
Tesla is going to need all these battery cells for the Model Y which will be produced at Giga Berlin. Tesla may take some of these batteries and supplement other Giga factories with additional batteries.
Government Funding From Germany
Tesla could receive over $1 Billion in funding from the German government.
Tesla has applied to the state of Brandenburg for approval for battery production at the new factory for its batteries. These battery cells will be ancillary equipment for vehicle production. Tesla completely revised its application documents and submitted them to the Environment Ministry last Thursday.
Elon Musk has previously disclosed that Tesla plans to create 100 GWh of battery production, but this appears to be up to 250 GWh according to multiple sources now.
The cost of the factory is quite a large sum of money, but I believe as Tesla continues to increase revenue and profits, that $6 billion for a battery factory will be a drop in the bucket for Tesla and that we'll start to see more of these battery factories produced around the world.
What do you think of Tesla's new factory to produce batteries in Germany? Will it reach 250 GWh? How long will it take to complete the factory and reach volume battery production?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow his Tesla news coverage on Torque News.