Tesla (TSLA.O) has submitted a request to German local authorities for approval to make significant changes to its factory near Berlin, reports Reuters on July 19. This is a crucial step in Tesla's ambitious plan to transform the site into Europe's largest car plant. The company aims to double the factory's capacity to produce 1 mn cars per year and generate 100 gigawatt hours of battery production. These numbers surpass the production figures of Volkswagen's (VOWG_p.DE) Wolfsburg headquarters.
The application documents published by the local environment ministry and water authority outline the proposed modifications for the plant. These changes will be implemented in three stages, with the initial stage including the construction of a battery cell testing lab and extensions to water recycling. The modifications should be operational by the first half of 2024. Additional alterations involve expanding or modifying existing parts of the facility such as the press shop and paint shop, as well as constructing new elements like a material storage facility.
Tesla has encountered significant delays in opening the plant due to objections filed by local citizens, primarily related to environmental impact and water usage. The local community has until mid-September to file objections to the latest proposals. As part of the expansion plans, Tesla has committed to not utilising additional water capacity but instead recycling the 1.4 mn cubic metres of water it is already licensed to use.
Once the plant reaches full capacity, it is expected to surpass Volkswagen's Wolfsburg plant, which produced 400,000 vehicles last year with a capacity of 800,000 vehicles. Currently, Tesla produces approximately 5,000 cars per week in Grunheide, but no specific timeline has been provided for scaling up production.
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