Tesla wants to expand its factory in Grünheide near Berlin to become Germany’s largest car factory. The goal is to double production capacity from the initial target of 500,000 cars to one million cars per year. This is reported by the Berlin “Tagesspiegel”.
The company of tech billionaire Elon Musk submitted applications for an environmental permit from the state of Brandenburg in three parts. The first application mainly concerns modifications to the existing factory. The other applications are apparently for new construction.
After the planned expansion, 20,000 Teslas will roll off the assembly line every week; At the end of March, there were 5000 models per week for the first time.
11,000 employees currently produce around 250,000 electric cars per year in Grünheide. According to the report, Tesla plans to double its factory workforce to 22,500 while building a new production building to the north of the factory, measuring approximately 700 by 700 meters. There are currently no further evictions planned for the expansion.
These expansion plans are nothing new in themselves: Tesla has indicated from the outset that it wants to expand the Grünheide plant in several phases. The first phase of expansion is currently complete and three more could follow in total.
Tesla has been producing electric cars in Germany since March 2022. However, the goal of the first expansion phase, 500,000 cars per year, has not yet been achieved. The lack of skilled workers, internal problems at the Tesla factory and the lackluster demand for electric cars in Germany due to the reduced subsidy since the beginning of the year are possible reasons for this.
More than ten countries are said to have applied for the establishment of the first European gigafactory. Germany triumphed. The authorities had also lured Tesla to East Germany with the prospect of subsidies. It was originally agreed that the American car manufacturer would have to produce in Germany for at least ten years, otherwise the subsidies would have to be repaid.
In Brandenburg, Tesla also benefits from its proximity to the German automotive supply industry and, last but not least, from a huge pool of talented engineers.
The Tesla factory should also bear fruit for Brandenburg. If the factory becomes a success, there is a good chance that other suppliers will settle in the area. In addition to the up to 22,500 jobs at Tesla, supply companies could create two to three times as many jobs.
Tesla will have to meet more safety requirements in the future
The e-car giant must also meet more safety requirements than before for the new construction plans. In concrete terms, the plans for the expansion mean that the operation will be classified from the lower class to the higher class according to the Major Accidents Regulation. This includes a comprehensive security report. In the future, further reporting obligations will be required and the equipment of the factory fire brigade must be of a higher standard.
Tuesday (July 18) Tesla will give information at an event in Grünheide. The application should be public from Wednesday (July 19), including the authorities’ statements, and readable on the internet. Citizens can then object to the project until 18 September.
Conservationists are still concerned
Conservationists remain concerned because part of the factory is located in a water protection zone. Tesla had always dismissed these concerns.
Storage buildings are also planned with the expansion, which are outside the water protection area, according to Tesla. Construction work is expected to start in the first half of 2024. The construction of another factory building is not yet planned.
According to the company’s plans, demand for fresh water should not increase with the expansion. 1.4 million cubic meters of water per year are planned for a production capacity of 500,000 vehicles per year. This number should not increase if the expansion is extended to one million vehicles per year.
Battery production moved to the US
The capacity for battery storage production will be increased from 50 to 100 gigawatt hours per year. As part of the expansion, a battery recycling plant is also planned to recover valuable materials from battery cells.
However, it remains uncertain whether complete batteries will be produced at the battery factory in Grünheide, as initially announced. Tesla recently shifted its battery production focus to the United States for tax breaks.
Originally, the EU and Germany also lured Tesla with subsidies for a battery factory. According to the Brandenburg state government, Tesla initially “applied for funding” for battery cell production and research in Germany. It was 1.14 billion euros. At the end of 2021, Tesla would have withdrawn. Finally, at the beginning of 2023, it was announced that the American car manufacturer will first produce important battery components in the US in the future, so that value creation will mainly take place there.
A spokeswoman for Tesla announced in February that the focus of cell production is currently in the US because of the tax breaks. The Biden administration rewards “green investments” with tax breaks. That does not mean that Tesla is giving up plans in Germany, it prefers to speak of “pause”, according to the company spokeswoman.
Tesla on the pillory of the union
The trade union IG Metall repeatedly made serious accusations against the Tesla plant in Grünheide near Berlin. It’s about cold factory buildings, stress and weird confidentiality clauses in the employment contract.
The renowned technology magazine “Wired” already reported in December 2022 about “total chaos” at the German Tesla factory. There is great dissatisfaction among the staff, even experienced employees are leaving the company.
With material from press agency DPA and t-online.
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
