Tesla Giga Berlin to receive state aid for advanced battery cell factory

As Tesla Giga Berlin is getting prepared to start production by receiving approvals by this October. The factory is also discussing the amount to be received from the state aid for the advanced battery factory Tesla is going to build in Grunheide. By the end of 2021, the details will be decided.

Tesla's 4680 cell production process outlined in Giga Berlin's revised  filings
Image credits- Teslarati

The state aids come under the European Battery Innovation project which the EU commission approved as part of its goals towards the zero carbon emissions mission. It was to encourage local battery innovation and research. A total of 2.9 billion euros were dedicated only to the battery value chain. EU also released a list of companies that are eligible for this state aid. And Tesla was listed under battery systems, recycling, battery cells, and sustainability.

Image credits- Teslarati, EU

The precise amount was not released, but it is speculated to be single-digit billion. In the past Elon Musk announced that the Giga Berlin will have the world’s largest battery production facility. And Tesla plans to invest 5 million euros.

As Tesla in Germany is also going to produce 4680 battery cells, the production facility will be equipped with advanced technology required to build the game-changing battery cells. Recently it was known that Tesla is progressing with its production yield. As the company plans to build Model Y with 4680 battery cells and structural battery packs, once Giga Berlin production of vehicles starts, the factory will start battery manufacturing as soon as the factory is finished.

Production of vehicles to start soon

In February it was known that Tesla will receive at least 1 billion euros for the battery production facility. The EU’s approval list had more than 20 companies. Despite all the decisions going to be extended till year-end, Elon Musk is pushing the factory to start production of vehicles by October. He also announced a factory tour in October fest the last time he visited Giga Berlin.

However, further delay for vehicle production is also not ruled out. Because the environmental agency is yet to give its approval for the production. After various resistance from the local citizens and authorities, the factory finally seems to be getting support as politicians came in and supported Tesla.

In reference to the water concerns, Elon Musk joked around saying, “This region has so much water, look around you. It’s like water everywhere here. Does this seem like a desert to you? It rains a lot.” Considering the past ways how Tesla overcame hurdles in the making of Giga Berlin, it is also possible that the production starts early.