Tesla May Receive €1.14 Billion in Funding for Giga Berlin Battery Factory

Tesla May Receive €1.14 Billion in Funding for Giga Berlin Battery Factory

Photo: @gigafactory_4/Twitter

Tesla may receive €1.14 billion in funding for its battery factory at Giga Berlin. This high amount of funding is directly related to the number of jobs provided and the size of the manufacturer's investment in the factory.

Federal Economy Minister Peter Altmaier believes that 2,000 or more jobs at Tesla's planned Grünheide battery plant are realistic, so funding for the facility should be high, Tagesspiegel reported. Tesla and the Federal Department of Economic Affairs and Energy have been negotiating for months on a specific amount of funding that Altmaier pledged to the company early on.

At the moment, a much larger amount of funding is being discussed. Funding of €1.14 billion is now expected to be agreed upon between all parties and ready for approval. Funding will come from the second European battery cell program Important Projects of Common European Interest (IPCEI). Most of the IPCEI funding will go to Tesla. Ten other companies that have been promised or approved subsidies will share the rest of the money.

The Federal Ministry of Economics, in the monthly Schlaglichter der Wirtschaftsppolitik publication in August 2021, announced that the investment in the production of battery cells in Grünheide by Tesla is expected to be around €5 billion.

Tesla's battery plant at Giga Berlin is set to be the first in the world to produce the new 4680 cells, which were unveiled in September 2020. They should provide performance improvements, be manufactured in a significantly more environmentally friendly way, and be cheaper than what is on the market today. Tesla has already applied for a preliminary permit for an early start on the construction of its battery factory.

H/T @TAktionare/Twitter

© 2021, Eva Fox | Tesmanian. 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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