Tesla Will Build "New Technology" Battery Cells in Germany

Rob Maurer

Giga Berlin Cell Production Plans

After Tesla CEO Elon Musk alluded to Tesla's battery plans for their under-construction Gigafactory near Berlin during Tesla's second quarter earnings call last week, Brandenburg's Minister of Economic Affairs, Labor, and Energy Jörg Steinbach added some new info on what Tesla has in mind for their German factory. 

According to Der Tagesspiegel, Steinbach commented that Tesla has already informed him of their plans to build battery cells in Brandenburg.

"Tesla has started planning for the production of battery cells in Grünheide. The company told us that." - Jörg Steinbach (Google Translated)

While it doesn't necessarily confirm Tesla would be building cells themselves, it does seem to be the implication.

In a separate report, RBB24 shared further commentary from Steinbach.

"A 'completely new technology' is behind the electricity storage, said Minister of Economics Jörg Steinbach on Monday antenna (sic) Brandenburg. The new batteries are smaller and, thanks to their higher energy density, allow for greater range, the minister said." - RBB24 (Google Translated)

Any battery production will reportedly be part of a second phase, which would require additional regulatory approval. Steinbach had no estimate on the timing for such plans.

Production Pace

While most pundits have doubted Tesla's ability to replicate the speed with which Tesla's Giga Shanghai factory was erected, Tesla seems to be on a similar trajectory with Giga Berlin. Over the weekend, Musk highlighted the speed on Twitter.

"Giga Berlin will come together at an impossible-seeming speed. The prefabricated construction method in Germany is extremely impressive." - Elon Musk

Providing some support to Musk's statement is Twitter user Tobias Lindh, who has tracked and compared construction milestones for Giga Shanghai and Giga Berlin. Per Lindh's research, Tesla has achieved production milestones within a shorter period of time on Giga Berlin than they were achieved for Giga Shanghai, perhaps even by a few months. On Tesla's second quarter earnings call, Musk noted Tesla's goal to build better factories for less money in less time. Giga Berlin may be on track to demonstrate just that.

For more on Tesla including TSLA short selling, Elon Musk's interview with the New York Times, and competition from BMW, see the included video.


Writing Assistance by Pranshu Agarwal

Disclosure: Rob Maurer is long TSLA stock and derivatives

Comments (1)
No. 1-1

Solid analysis backed by thorough, fact-based research.