Tesla May Receive €1.14 Billion Grant For German Battery Factory

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According to German newspaper Der Tagesspiegel, Tesla is in line to receive a €1.14 billion grant from the German Ministry for Economic Affairs and Energy (BMWI) to help build a new battery factory adjacent to its new factory in Grünheide near Berlin. Peter Altmaier, the head of BMWI, tells the press, “If the product and production is successful, a number of 2000 or more jobs in the battery area of ​​the Grünheide plant is realistic.” BMWI says Tesla’s total investment in the Grünheide battery factory will be approximately €5 billion.

The number of jobs is about double what was expected from the battery factory, which will manufacture a new generation of more powerful and environmentally friendly battery cells. It may be the world’s largest battery factory once completed, with an annual production capacity of 100 GWh. The assembly plant, where the Model Y will be manufactured, is expected to create 12,000 jobs for production workers. It is expected to turn out a half million cars a year when it is completed and in full operation.

The size of the grant to Tesla is in line with the funding BMWI is providing to other companies that are building battery factories in Germany. Just a few days ago, Altmaier  delivered an approval notice to Opel in the amount of €437 million for a battery cell factory in Kaiserslautern that will cost about €2 billion. That’s a ratio of 1:4.5, which is roughly the same ratio as the BMWI grant to Tesla.

According to Der Tagesspiegel, the funding for Tesla has been coordinated with all those involved and is ready for approval. That means a third of the currently available funding for innovative battery cell projects will go to Tesla. In all, 11 companies will participate in the current funding round. The final announcement of the grant to Tesla is expected sometime in the 4th quarter of this year.

Europe and Germany want to achieve technological independence and promote climate-neutral mobility, and Tesla is considered a technology leader in the electric vehicle field. “In 2030 we will see 14 to 15 million electric vehicles on the roads in Germany. Today there are a million,” says Peter Altmaier.

Tesla has already applied for pre-approval for its battery factory in order to accelerate construction before the final environmental approval is received. The company did the same thing for its Grünheide assembly plant in order to get it up and running quickly. Elon Musk is never one to allow the grass to grow under his feet.


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Steve Hanley

Steve writes about the interface between technology and sustainability from his home in Florida or anywhere else The Force may lead him. He is proud to be "woke" and doesn't really give a damn why the glass broke. He believes passionately in what Socrates said 3000 years ago: "The secret to change is to focus all of your energy not on fighting the old but on building the new." You can follow him on Substack and LinkedIn but not on Fakebook or any social media platforms controlled by narcissistic yahoos.

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