# Tesla’s long-delayed German gigafactory gets conditional green light Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-04 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Tesla Receives Conditional Go-Ahead for German Gigafactory Meta Description: Tesla's 5 billion euro German gigafactory near Berlin gets go-ahead, aimed at overtaking European EV market leader Volkswagen. Environment concerns persist URL: https://financedigest.com/teslas-long-delayed-german-gigafactory-gets-conditional-green-lighthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-03-04t183636z4lynxmpei230skrtroptp4tesla-berlin-1736816010369-compressed.jpg) By Nadine Schimroszik and Christoph Steitz POTSDAM, Germany (Reuters) -Tesla received a conditional go-ahead for its German gigafactory near Berlin on Friday, the state of Brandenburg said, ending months of delay for the 5 billion euro ($5.5 billion) landmark plant. The gigafactory, which is key to Tesla CEO Elon Musk’s ambitions to vanquish European market leader Volkswagen, was initially supposed to open last summer. Germany’s largest automaker has the upper hand in Europe, with a 25% share of [electric vehicle](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S") (EV) sales to Tesla’s 13%. Brandenburg state premier Dietmar Woidke told a news briefing that the development marked “a big step into the future”, adding that the Tesla plant would be a major [industrial and technological](https://www.financedigest.com/five-industries-benefiting-from-multi-carrier-sim-technology.html "Five Industries Benefiting from Multi-Carrier SIM Technology") driver for Germany and the region. [Around 2,600 of the plant’s expected](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") 12,000 workers have been hired so far, unions said last month, and Tesla is in talks with numerous parts suppliers in the region to source as much as possible locally, lowering waiting times and costs. Underlining the intense competition facing Tesla, Volkswagen said on Friday it would spend about 2 billion euros on a new factory near its Wolfsburg headquarters to make the Trinity, the first of a new generation of [electric vehicles for the German](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") carmaker, with construction due to start next year. Friday’s 536-page conditional [building permit for Tesla does not mean](https://www.financedigest.com/does-the-monzo-effect-mean-banks-will-need-to-rethink-brand-building.html "Does the ‘Monzo effect’ mean banks will need to rethink brand building?") the U.S.-based EV pioneer can start production right away. It must first prove that it fulfils numerous conditions, including in water use and [air pollution](https://www.financedigest.com/air-pollution-surges-as-heatwave-sweeps-across-europe.html "Air pollution surges as heatwave sweeps across Europe") control. Only then will [Tesla get its long-awaited operating permit and actually start rolling out the 500,000 battery-powered vehicles](https://www.financedigest.com/tesla-tops-battery-electric-vehicle-registrations-in-germany-beating-volkswagen.html "Tesla tops battery-electric vehicle registrations in Germany, beating Volkswagen") it wants to produce at the new plant, located in the small community of Gruenheide, each year. Kickstarting production in Germany means [Tesla can deliver its Model](https://www.financedigest.com/tesla-cuts-u-s-model-s-and-model-x-prices-between-4-and-9.html "Tesla cuts U.S. Model S and Model X prices between 4% and 9%") Y cars to European customers faster and more cheaply, after meeting orders in Europe from its Shanghai factory in recent months as it awaited approval for the site. Tesla plans to show that it [meets the imposed conditions](https://www.financedigest.com/opec-meeting-to-take-into-account-market-conditions-iraqi-official.html "OPEC+ meeting to take into account market conditions – Iraqi official") within the next two weeks, Brandenburg’s environment minister Axel Vogel said, while objections can be filed over the next month. [Tesla’s next challenge](https://www.financedigest.com/factbox-the-challenges-automakers-and-now-tesla-face-with-humanoid-robots-2.html "Factbox-The challenges automakers, and now Tesla, face with humanoid robots") will be to scale up production as quickly as possible, which Musk said at a fair on-site in October would take longer than building the factory. Local environmental [groups have long feared that the plant will negatively impact](https://www.financedigest.com/uk-report-warns-of-impact-of-islamist-groups-in-prisons.html "UK report warns of impact of Islamist groups in prisons") local habitat. Numerous public consultations, focusing primarily on that aspect, delayed the process, with Musk expressing irritation on multiple occasions over German bureaucracy. The factory, which Tesla has begun constructing under pre-approval permits, will also include a [battery plant](https://www.financedigest.com/hyundai-breaks-ground-on-5-5-billion-u-s-ev-battery-plant.html "Hyundai breaks ground on .5 billion U.S. EV, battery plant") capable of generating more than 50 gigawatt hours (GWh) per year – outstripping European competitors. [Batteries for cars](https://www.financedigest.com/scratched-ev-battery-your-insurer-may-have-to-junk-the-whole-car.html "Scratched EV battery? Your insurer may have to junk the whole car") produced on-site will initially come from China, Musk said, but he intends to reach volume production at the German battery plant by the end of next year. ($1 = 0.9163 euros) (Reporting by Nadine Schimroszik, Christoph Steitz, Jan Schwartz and Victoria Waldersee; editing by Kirsti Knolle, Miranda Murray, Louise Heavens and Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---