Home Latest News Tesla could drop plans for German battery plant, report says – Automotive...

Tesla could drop plans for German battery plant, report says – Automotive News Europe

Tesla’s battery plant next to its German car factory, shown, would produce more than 50 gigawatt hours a year.
BERLIN — Tesla is pausing its plans to make battery cells in Germany as it looks at qualifying for U.S. electric vehicle and battery manufacturing tax credits, the Wall Street Journal reported.
Tesla is looking to tap into tax credits that will be offered to automakers who produce EV components, such as batteries, in the U.S., the paper said, citing people familiar with the matter said.
The EV maker is ramping up production of Model Y SUVs at its new European plant in Gruenheide, near Berlin, which opened in March.
Tesla had planned to build a battery plant next to the car assembly plant to generate more than 50 gigawatt hours a year.
The Wall Street Journal said Tesla is now considering shipping the equipment destined for battery production in Gruenheide to the U.S. instead.
The U.S. tax credits are part of the Biden administration’s Inflation Reduction Act (IRA), which was signed into law last month.
For example, the government provides a tax credit of $35 per kilowatt hour (kWh) for each U.S.-produced battery cell.
Under the IRA, consumers who purchase electric vehicles are also qualified to receive a rebate of $7,500, however the vehicles must meet certain domestic manufacturing requirements.
The surging cost of energy prices could be an additional factor behind Tesla’s decision, the Wall Street Journal report said.
The automaker is already looking to ramp up in-house production of its batteries with pilot projects in California and a production facility in Texas.
Battery systems are the most expensive single element in most EVs, so making lower-cost, high-performance packs is key to producing affordable electric cars that can go toe to toe with combustion-engine rivals on sticker prices.
By using bigger cells and a new process to dry-coat electrodes, Tesla could halve the cost of a Model Y battery, saving more than 8 percent of the car’s U.S. starting price, battery experts say.
Meanwhile, Tesla battery supplier LG Energy Solution said in July that it is looking at sites in Europe for a new battery plant and would ramp up production in Asia outside of China, where COVID-19 lockdowns and rising costs were weighing on profits.
Tesla has not commented on the Wall Street Journal report.  German Economy Minister Robert Habeck said on Thursday he had no information on any changes to Tesla’s  plans in Germany.
The German economic ministry has previously estimated that Tesla was investing 5 billion euros in the battery plant but the automaker withdrew an application for European Union aid offered to companies to help the bloc to reduce imports from industry leader China.
Reuters contributed to this report
Please enter a valid email address.
Please enter your email address.
Please verify captcha.
Please select at least one newsletter to subscribe.
You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.
You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.
1155 Gratiot Avenue
Detroit MI  48207-2997
Tel: +1 877-812-1584
Email Us
ISSN 2643-6590 (print)
ISSN 2643-6604 (online)


Previous articleEarth may be attacked by aliens, scientists warn on beaming Earth's location into space – DNA India
Next articleDogecoin Price Predictions: Where Can a Major Crypto Rally Take DOGE? – InvestorPlace