Telsa will also manufacture battery cells at its new Berlin factory, Elon Musk says

US electric car manufacturer Tesla will be manufacturing battery cells along with electric vehicles at its planned German factory in Grünheide near Berlin, manager magazine reported citing comments made by Tesla CEO Elon Musk on Friday during an online conference on the company’s second quarter performance. While battery production at the plant has been widely expected, Tesla has yet to confirm whether it would actually take place at the site, according to the publication. "There will be local cell production that meets the needs of the Berlin factory," Musk said. Tesla plans to manufacture some 500,000 cars at the factory located in the state of Brandenburg, starting in mid-2021. While there was no official mention of battery cell production in the building application filed by Tesla in January, an environmental impact assessment included a floor plan with an area labelled “Cell,” which was understood to mean that battery production would take place there.

Growing demand for electric vehicles in Germany could boost the country's post-COVID-19 recovery as domestic carmakers turn their focus on e-mobility. As part of Germany’s 130 billion euro ($152 billion) COVID-19 recovery programme, the government has doubled e-car buyer premiums from 3,000 to 6,000 euros in an effort to increase the number of e-cars on the road. The shift to low-carbon mobility in Germany has been slow but the country's leading carmakers are now all betting on electric vehicles.