Tesla plans to invest 5 billion euros in its battery cell factory in Grünheide near Berlin to complete its nearly finished electric car factory at the same location.
see photosTesla has pushed back the expected opening of the Gigafactory to the end of 2021
Germany will likely decide by the end of the year how much state aid US electric vehicle maker Tesla will receive for its planned battery cell factory near Berlin, an economy ministry spokesman said on Sunday. In January the European Union approved a plan that includes giving Tesla, BMW and others state aid to support the production of electric vehicle batteries and help reduce imports from industry leader China.
The European Union’s approval of a 2.9 billion euro ($3.45 billion) European Battery Innovation Project, involving more than 40 companies, follows the European Battery Alliance’s 2017 launch to support the industry during the shift away from fossil fuels .
In January the EU approved a plan that includes giving Tesla, BMW and others state aid to support the production of electric vehicle batteries.
According to estimates by the German economy ministry, Tesla plans to invest 5 billion euros in its battery cell factory in Gruenheide, near Berlin, to complete its nearly finished electric car factory at the same location.
The unusually high investment volume means the US carmaker could rely on German state subsidies of 1.14 billion euros, the Tagespiegel newspaper reported on Sunday.
This chimes with Business Insider’s February report, which said Tesla would receive at least 1 billion euros in public funding from Germany to set up its battery cell factory near Berlin.
An economy ministry spokesman said there was no final amount yet as talks are ongoing with the carmaker and the European Commission, adding that a final decision is likely before the end of the year.
Tesla Chief Executive Elon Musk said last month that he expects the first cars to be built at its planned Gigafactory in Grünheide in October or soon after.
Tesla CEO Elon Musk said last month that he expects the first cars to be built at its planned Gigafactory in Grünheide in October or soon after.
Tesla has pushed back the expected opening of the Gigafactory to the end of 2021, blaming German bureaucratic hurdles. The plant has also faced local resistance due to environmental concerns.
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Economy Minister Peter Altmeier said last Thursday that carmaker Opel would receive a government grant of 437 million euros for its battery cell factory in Kaiserslautern as part of a broader European initiative to build up a domestic battery industry.
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