Tesla plans to significantly expand battery cell production at its Grünheide facility near Berlin. According to the company, an additional $250 million will be invested to increase annual cell capacity to 18 gigawatt-hours. This more than doubles Tesla’s previous target of 8 gigawatt-hours, which was announced in December. As part of that announcement, Tesla had already promised to invest nearly one billion euros in the factory.
The company says the expansion will also increase staffing needs. Tesla expects to have more than 1,500 employees in battery cell production alone. Tesla currently employs around 11,000 people in Grünheide. The plant is Tesla’s only Gigafactory in Europe.
Nevertheless, battery cell production in Grünheide remains well below Elon Musk’s original plans. In 2020, Tesla announced plans to build the world’s largest battery cell factory in Berlin, with an initial annual capacity of 100 gigawatt-hours. A later expansion to up to 250 gigawatt-hours was also envisioned. However, the company halted these plans in 2022 after U.S. subsidy programs became more attractive.
Greater Integration Planned
Tesla is linking the expansion of cell production with greater vertical integration at the site. According to Tesla, battery cells and vehicles will be produced entirely in Grünheide starting in 2027. Tesla argues that this will increase the stability of European supply chains.
At the same time, however, the company acknowledges the challenging economic landscape for cell production in Europe. Tesla claims that, in international competition with China and the U.S., the manufacture of battery cells is currently hardly economically viable.
Sources:
https://www.reuters.com/business/autos-transportation/tesla-invest-250-million-battery-plant-outside-berlin-2026-05-12/
https://eletric-vehicles.com/tesla/tesla-more-than-doubles-berlin-battery-cell-output-target-to-18-gwh
