Tesla has secured the green light to start expanding its electric car factory in Grünheide, near Berlin, after obtaining an environmental permit from the Brandenburg State Environmental Agency. The U.S. electric vehicle (EV) maker plans to significantly increase production at the site, with the goal of manufacturing up to one million cars annually, doubling its current target of 500,000 cars per year—a milestone it has not yet reached.
The expansion of the Grünheide factory will make it the largest car manufacturing plant in Germany, surpassing Volkswagen's Wolfsburg facility. Tesla is now authorized to proceed with the first of three planned phases of the expansion, which includes building infrastructure for storage areas, a battery cell test lab, and logistics zones.
Tesla welcomed the permit, stating, "This is an important milestone and gives us the necessary planning security to implement projects even faster in the future." Further expansion stages may include the construction of new buildings for vehicle and battery production.
Key to Tesla's European Strategy
The Grünheide factory, which currently employs 12,500 workers, is critical to Tesla's plans to meet the rising demand for electric vehicles (EVs) in the European market. CEO Elon Musk has referred to the factory as essential for accelerating the production of affordable EVs. However, with recent signs of weakening EV demand in Europe, it is uncertain when Tesla will ramp up production to the full one million cars per year.
Environmental Controversy
The expansion of the Grünheide plant has been met with widespread criticism, especially from environmentalists. Tesla, known for producing zero-emission vehicles in factories powered by renewable energy, drew backlash after satellite images revealed that approximately 500,000 trees were felled to create space for the factory.
While the current expansion approval only pertains to land Tesla already owns, the project remains contentious. The local council in Grünheide had previously approved the construction of a railway station on land not yet owned by Tesla, which would also involve tree clearing. However, after protests from locals and environmental groups, the plans were scaled back, reducing the number of trees that would need to be cut down.
Despite these environmental concerns, Tesla continues to push forward with its expansion plans, aiming to solidify its presence in the European market and boost production capacity to meet future demand.
