Finance
Tesla ramps up battery cell investments at German gigafactory
Published by Global Banking and Finance Review
Posted on December 16, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 16, 2025
2 min readLast updated: January 20, 2026
Tesla plans to produce 8 GWh of battery cells annually at its German gigafactory by 2027, investing nearly 1 billion euros to enhance vertical integration.
FRANKFURT, Dec 16 (Reuters) - Tesla is creating the conditions to produce up to 8 gigawatt hours of battery cells a year at its German gigafactory in Gruenheide near Berlin starting in 2027, the U.S. automaker said in a statement on Tuesday.
"To this end, we are investing another three-digit million amount in cell production," it said, adding this would take total investments in the local cell factory to nearly 1 billion euros ($1.2 billion).
"The aim is to increase the vertical range of manufacture at the site: everything from battery cells to vehicles will be produced at a single location. This is unique in Europe and also strengthens the resilience of our supply chains," Tesla said.
"If the conditions are right, the entire battery value chain will also take place in Gruenheide in the future. In international competition with China and the USA, it is currently hardly possible to produce cells economically in Europe."
The Gruenheide plant, which employs around 11,500 staff, is Tesla's only gigafactory in Europe, a market where the U.S. electric vehicle pioneer has faced dwindling market share.
($1 = 0.8495 euros)
(Reporting by Christoph Steitz, editing by Thomas Escritt)
Battery cell production refers to the manufacturing process of creating individual battery cells, which are essential components in rechargeable batteries used in electric vehicles and other technologies.
Vertical integration is a business strategy where a company expands its operations into different stages of production within the same industry, aiming to increase efficiency and control over the supply chain.
A gigafactory is a large-scale manufacturing facility designed to produce batteries and other components at high volumes, often associated with electric vehicle production.
Supply chain resilience refers to the ability of a supply chain to anticipate, prepare for, and respond to unexpected disruptions, ensuring continuity and efficiency in operations.
Investment in technology involves allocating resources towards the development, implementation, and enhancement of technological solutions to improve efficiency, productivity, and competitiveness in various industries.
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