Tesla Expands Battery Cell Production at German Gigafactory

Tesla has announced fresh investments to scale up battery cell production at its Gigafactory in Gruenheide near Berlin, aiming to produce up to 8 gigawatt hours of battery cells annually from 2027. The U.S. electric vehicle maker said it will invest an additional three-digit million euro amount, taking total investment in the local battery cell factory to nearly €1 billion.

The company said the expansion is part of a strategy to deepen vertical integration at the site, allowing everything from battery cells to complete vehicles to be manufactured at a single location. Tesla described this as a unique setup in Europe that will help strengthen supply chain resilience and reduce dependency on external suppliers.

Tesla also noted that producing battery cells economically in Europe remains challenging amid competition from China and the United States. The Gruenheide facility, Tesla’s only gigafactory in Europe, currently employs about 11,500 people and plays a critical role as the automaker works to stabilise its position in the European electric vehicle market.

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