Battery Factory

Tesla Giga Berlin Battery Factory to Receive 10 Figure Funding $1B+

Tesla Giga Berlin Battery Factory to Receive 10 Figure Funding $1B+

Photo: @gigafactory_4/Twitter

Tesla has successfully applied for the IPCEI funding program of the Federal Ministry of Economics, and on January 26, the European Commission approved funding for the second battery cell alliance. According to government sources, funding for the California-based manufacturer is estimated to be in the one-digit billions of euros (1B+).

Last week, the Federal Ministry of Economics announced which companies have received government funding under the IPCEI battery cell program. One of them is Tesla, which will build a battery cell factory in Grünheide. However, the amount of funding remained unknown.

The Ministry of Economy announced that the state aid framework for "Important Projects of Common European Interest" is based on research spending. Investment also depends on scaling, which is the result of research and development, and itself includes an important component.

German publication Business Insider found out from several government sources that Tesla funding will be in the single-digit billions of euros (1B+); that is, the amount of funding will be 10 figures. Government circles say that Brandenburg will have to contribute about a third of the funding.

“We want competitive, innovative and environmentally friendly rechargeable batteries to be made in Europe,” said German Minister of Economics and Energy Peter Altmaier, in January 2020. “To do this, we combine the innovative capabilities and potential of our companies,” he continued.

It should be noted that Tesla has long been ahead of all automakers in the development of batteries. The American company is investing heavily in the research and development of the this most critical EV component, and the manufacturer’s cars are all great examples of this. That is why the participation of the company in this union will be of great importance for all project participants.

In addition, Tesla in Germany will create up to 40,000 jobs at its state-of-the-art factory; and to be clear, this number excludes numerous jobs that will no doubt be generated to feed the supply chain. The factory can revive a structurally weak region, and such job creation is also one of the goals of the IPCEI program.

“The second IPCEI battery project, coordinated by Germany, clearly shows that the European battery value chain is becoming a reality. Germany and Europe will develop competitive, innovative and environmentally friendly battery cells on their own. This stimulates large private investment and creates new jobs for the future,” Altmaier said last week.

© 2021, Eva Fox. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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