Monitoring Desk
ISLAMABAD/BERLIN: American automaker Tesla has paused a plan to produce entires batteries in Brandenburg, Germany and instead would carry out some production in the United States, where tax incentives were more favourable.
The United States carmaker had originally planned to produce the full battery at the Gruenheide site in Germany, with a peak capacity of over 50-gigawatt hours per year. But with the US offering to electric vehicle makers to source batteries within the US with tax breaks and consumer discounts, the company changed course.
Tesla started battery system
The Brandenburg economy ministry said, “Tesla has started its battery system production in Gruenheide and is preparing to manufacture battery cell components.
According to Reuters, the company prioritized further production steps in the US because tax incentives make business conditions more favorable there.
Tesla didn’t respond to requests for comment.
Tesla Chief Executive Elon Musk said in March 2022 that the battery plant would reach volume production by the end of 2023, but the plant and car production site hit their targets later than the programme.
In 2020, Elon said that the Berlin ‘Gigafactory’ would be the giant battery factory in the globe.
Tesla struggled to ramp up production of the 4680-battery cell at its factories in Fremont, Austin and California and Texas, which experts have attributed to fresh and unproven techniques the company has been having trouble scaling up.
