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Tesla's Berlin factory may turn the local area into a battery manufacturing center

2021-02-23

According to foreign media reports, Tesla CEO Elon Musk shocked the auto industry giants when he chose a small town in eastern Germany to build Tesla's first European factory. Now, the politician who successfully attracted Musk's investment in Gruenheide wants to make the area an important electric vehicle supply center.

But Tesla is by no means alone in Brandenburg. German chemical giant BASF plans to produce cathode materials and recycle batteries in Schwarzheide in the state. Air Liquide of France will invest 40 million euros (approximately US$48 million) in the local supply of oxygen and nitrogen. The US company Microvast will build fast charging modules for trucks and SUVs in Ludwigsfelde, Brandenburg.

Musk has said that the Berlin Gigafactory may eventually become the world's largest battery factory. His grand ambitions and these investments are increasing Brandenburg's hopes of becoming a center for electric vehicles, which may provide thousands of jobs. During World War II and after the fall of the Berlin Wall, Brandenburg lost most of its heavy industry. Brandenburg State Minister of Economy Joerg Steinbach said: "This is the vision I am pursuing. The arrival of Tesla has made the state one of the sites that companies are expected to choose for their factories. Compared to before, we have received more Consulting on the investment possibilities of Brandenburg, and all this happened during the epidemic."
Steinbach said in an interview that the battery production equipment to be built in Tesla's Berlin factory will be online in about two years. Before producing batteries in Germany, Tesla’s focus was to assemble Model Y at the Gruenheide plant. The plant is expected to start producing Model Y in the middle of the year, and will eventually have an annual production capacity of 500,000 vehicles.

Although the factory construction process is very fast for Germany, Tesla is still awaiting the final consent of the Brandenburg government due to legal challenges from several environmental organizations. Steinbach said that he was “not at all concerned” about the approval of the Berlin Super Factory, and the delay of some regulatory procedures does not mean that the factory will not get the final consent. He explained that the reason why the government is doing this is because it values ​​quality rather than speed to ensure that any decision can meet legal challenges. It does not rule out that the setback at the end of last year may cause the factory to delay operations, but he also said that Tesla has not yet Show any signs that production will not start in July.

Steinbach has promoted Brandenburg's proximity to Berlin, skilled labor and sufficient clean energy factories, which helped promote Tesla's investment in Germany at the end of 2019. Later, he helped Tesla form a special team to solve the problems faced by the company, from the water supply of the factory to the construction of highway exits.

Steinbach also explained the country’s complex regulatory approval process to Musk and his employees, saying that “sometimes you need to explain the culture of our approval process, which is greatly affected by environmental protection.” At present, due to hibernating bats and rare sand lizards, part of the work of Tesla's Berlin factory needs to be re-planned. Steinbach Steinbach is a chemist who has worked for Schering Pharmaceuticals for more than ten years.

Steinbach has tried his best to do his job well. He pointed out the assistance programs the company can apply for and assisted in contacting local labor agencies to support recruitment. Steinbach said: "Most of the industry is watching Brandenburg and what we are doing. This project has been regarded as the number one priority."

For Tesla, the Berlin Gigafactory is critical. As Volkswagen, Daimler and BMW expand the lineup of electric vehicles, this is the basis of Musk's European expansion plan.

For Germany, Tesla's new factory guaranteed employment during this depression. Last year, European car sales hit a record low. Under the pressure of being criticized for the slow transition to electric vehicles, the government of German Chancellor Angela Merkel handed Musk an olive branch, and German Economy Minister Peter Altmaier also promised Musk any help needed for the construction and operation of the factory.