Tesla Says Germany Is The First Choice For Its First European Gigafactory

BY Brad Anderson | Posted on

Just two weeks after confirming that Tesla will construct a Gigafactory in Shanghai, chief executive Elon Musk says the brand’s first European Gigafactory will probably be built in Germany.

Responding to a tweet suggesting that Germany could be the best place to build a Gigafactory, Musk wrote: “Germany is a leading choice for Europe. Perhaps on the German-French border makes sense, near the Benelux countries”.

Choosing Germany as the location for a new Gigafactory would make sense for the automaker as it already has operations in Pruem, Germany, just 30 km from Belgium. Tesla’s Grohamm Engineering division that specializes in automated manufacturing systems is based there and, in recent months, it has also played a vital role in boosting Model 3 production.

Tesla isn’t the only company looking to build automotive batteries in Germany. China’s Contemporary Amperex Technology (CATL) is currently in talks with the German state of Thuringia to construct its batteries in the country, Reuters reports. CATL, as well as LG Chem and Samsung, was recently tapped by Volkswagen to supply $25 billion worth of batteries for future electric vehicles.

It’s not just Europe and Asia where Tesla’s Gigafactory ambitions start and end. The company has previously said that at least one more is in the works. Additionally, a number of other battery manufacturers intend on following Tesla’s lead by creating huge battery production facilities.

The first of Tesla’s plants, Gigafactory 1, is still being constructed in Nevada, thanks largely to over $3 billion of investment from Panasonic. Tesla believes the plant will slash the cost of battery cells and make its future models significantly more affordable.

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