Tesla boosts investment to expand battery cell production

Elon Musk-owned Tesla, the U.S. electric vehicle maker, will increase its investment in battery ‌cell production at its plant outside Berlin by almost $250 million, boosting its capacity target for the site.

Tesla previously announced in December investments amounting to almost 1 billion euros ($1.2 billion) at the site in Grünheide, southeast of the German capital, as it seeks to bring battery cell and vehicle production all under one roof from next year.

The investment also reflects broader industry pressure to localize battery supply chains in Europe instead of relying heavily on Asian suppliers.

With the latest investment announced by the company on Tuesday, Tesla plans to create the conditions for annual ‌production capacity of 18 gigawatt hours, up from a previously planned 8 GWh.

"The ramp-up of battery cell production will also be accompanied by a significant increase in labor demand," the company said in a statement, estimating its staffing needs in battery cell production at more than 1,500 employees.

Tesla currently employs almost 11,000 people in Gruenheide, the company's only gigafactory in Europe.

Notably, Tesla previously paused some battery-production plans in Germany, but rising demand, tariffs, and European industrial-policy support appear to have revived the project.