Tesla’s battery factory in Germany will receive €120 million in state government funding. This will be part of the overall funding that will also be received from the German federal government.
On September 15, the Economic Committee of the Brandenburg State Parliament approved funding for the construction of the Tesla factory in the amount of €120 million. The discussion of this issue took place behind closed doors. Participants reported that parliamentary groups from the ruling coalition of the SPD, CDU, and the Greens have voted in favor of approving funding in this amount. Opposition factions abstained from voting.
Last week, the Brandenburg Budget Committee already approved financing from a future investment fund. The state announced that it would be pushing the construction of the battery plant with the federal government, and announced that it would sign a joint administrative agreement to that effect.
According to recently released information, Tesla may receive funding of about €1.14 billion from the second European battery cell program Important Projects of Common European Interest (IPCEI). The Federal Economy Ministry said there was still no final amount determined to fund the American manufacturer’s battery factory.
At first, Giga Berlin will produce 50-gigawatt hours of battery cells annually. When the factory is completed, it will be the largest battery manufacturing plant in Europe. However, this is only an initial plan, and in the future, Tesla CEO Elon Musk hopes to produce around 250 gigawatt-hours per year. “I can even imagine expanding to 200 to 250 GWh,” he said. “I’m pretty sure that that would make it the largest battery factory in the world.”
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