Tesla has halted plans for battery production in the German federal state of Brandenburg and plans to shift part of the production process to the USA due to more favorable tax incentives, reported the Brandenburg Ministry of Economics.
The American electric vehicle manufacturer initially planned to establish the entire production process in the municipality of Grueneheide, with a maximum capacity of over 50 gigawatt-hours per year.
After the USA offered tax breaks to electric vehicle manufacturers for sourcing batteries from domestic production, the company changed its plan.
“Tesla has started battery system production in Gruenheid and is preparing to produce battery cell components. In the upcoming production steps, they have prioritized the USA as business conditions there are more favorable due to tax incentives,” explained the Brandenburg Ministry.
Tesla did not respond to a request for comment on this information.
CEO Elon Musk stated in March 2022 that the battery factory would begin mass production by the end of 2023, adding that the battery and electric vehicle factories needed more time to achieve production goals than initially planned.
In 2020, Musk stated that the Gigafactory in Berlin would be the largest battery factory in the world.
In its home country, Tesla has faced difficulties in ramping up production of 4680 battery cells at its facilities in California and Texas, which experts attributed to new and unproven manufacturing techniques.
At the end of January, Tesla announced that it would invest more than $3.6 billion in expanding the Gigafactory complex in Nevada, which was set to receive two new factories for the mass production of the long-delayed semi-electric truck and new 4680 battery cells.
