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Media report: Is Tesla putting battery production in Grünheide on hold?

Media report: Is Tesla putting battery production in Grünheide on hold?

Tesla boss Elon Musk has announced the goal of making the factory in Grünheide near Berlin the world’s largest battery factory. A new US law could potentially put the brakes on these plans.

The further plans of the electric car manufacturer Tesla for the production of its own batteries in Germany remain unclear in view of possible tax breaks in the USA. The “Wall Street Journal” wrote that Tesla is pausing the plan to produce its own batteries in the new Grünheide car factory near Berlin. Manufacturing more batteries in the US could help Tesla qualify for additional tax breaks from US President Joe Biden’s so-called Anti-Inflation Act. The company initially did not comment.

Brandenburg knows nothing

The Brandenburg Ministry of Economics continues to assume that Tesla will build the battery factory for its own cell production. The ministry received initial information on Thursday, said spokeswoman Irene Beringer. “It seems possible that Tesla will reprioritize individual process steps in the plants, but that the Grünheide site will remain under construction and with its jobs.” She did not want to comment on the report.

In August, Congress in Washington passed a package of laws requiring billions to be invested in climate protection and the social sector. Among other things, it provides financial incentives for the construction of plants for electric cars, and energy research is to be promoted. The Brandenburg Economics Ministry called for a reaction from the EU because the US inflation reduction law would lead to a competitive disadvantage in Europe. “The EU must react here in terms of state aid in order to restore equality.”

Construction of the battery factory already far

The construction of the battery factory in Grünheide in Brandenburg is well advanced – but the timetable for opening was unclear. Tesla boss Elon Musk also wanted to make the plant near Berlin the world’s largest battery factory, as he said in November 2020. So far, the mass production of new battery cells with a production of dry electrodes is planned there, which should make do with significantly less space consumption and energy consumption. The company has been producing electric cars in Grünheide since March of this year.

In 2021, Tesla surprisingly waived possible state subsidies in the billions for battery production. Certain conditions must be met for such funding. For example, the project must make an important contribution to EU goals such as the research area and climate policy.

Source: Stern

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