Tesla is making a major investment in Germany, announcing plans to spend US$250 million to significantly expand battery cell production at Giga Berlin. The investment will more than doubles the factory’s previously announced battery production target.
The announcement was made on Tuesday by Giga Berlin plant manager André Thierig, who said the investment will help Tesla scale annual 4680 battery cell production capacity at the site to 18 gigawatt-hours (GWh) while creating more than 1,500 new jobs.
The updated production target represents a massive increase from Tesla’s previous plan of 8 GWh annually at the facility, announced just a few months ago, which had originally been expected to begin around 2027.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
Tesla Expands Battery Plans in Europe
The latest investment builds on battery manufacturing plans Tesla revived late last year after previously scaling back local cell production in Germany in 2022. At the time, Tesla shifted focus toward U.S. battery investments to take advantage of more favourable incentives under the Inflation Reduction Act.
However, Tesla never abandoned its long-term plans for Giga Berlin. In December, the automaker revealed it was preparing the site for battery cell production while also restarting battery pack assembly operations following a temporary shutdown caused by a fire earlier in the year.
Tesla also said it planned to invest hundreds of millions of euros into local battery operations, bringing total battery-related investment at the site to nearly €1 billion (US$1.2 billion).
The company’s broader objective is to consolidate battery cell manufacturing, battery pack production, and vehicle assembly at one location. If successful, Giga Berlin would become one of Europe’s most vertically integrated EV factories.
4680 Cells to Power Model Ys
Tesla has already resumed battery pack assembly at Giga Berlin using 4680 cells produced at Giga Texas. According to German reports, the revamped battery pack area now features upgraded automation systems that plant leadership has internally described as Tesla’s most advanced battery pack factory globally.
The new investment appears aimed at eventually localizing 4680 cell production in Germany, reducing reliance on imported cells and bringing the full battery manufacturing process closer to vehicle production lines.
The investment also comes as Tesla continues ramping vehicle production at the factory. Giga Berlin recently surpassed 750,000 Model Ys built since opening in 2022 and is currently increasing production capacity by 20% while hiring more employees and converting temporary workers into permanent positions.
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