Tesla Says it’s Focusing on Battery Cell Production in U.S., After IRA Act Incentives

Tesla has begun assembling batteries at its Gigafactory Berlin-Brandenburg, but the company says it now plans to focus battery cell production in the U.S. due to incentives from the recently passed Inflation Reduction Act (via Reuters).

This makes Tesla one of the first companies to shift its battery cell strategies following the massive incentives offered by the U.S. package.

According to statements on Wednesday, the Grünheide Tesla factory is also looking to produce certain components for battery cells, including electrodes, which the company plans to ship from the German factory to the U.S.

Tesla says cars produced at Giga Berlin will contain batteries assembled locally in the “near future.”

“The focus of Tesla’s cell production is currently in the United States due to the framework created by the United States Inflation Reduction Act (IRA),” Tesla said.

In recent months, some European Union leaders have shared concerns about battery production heading to the U.S. with the IRA’s local build guidelines for the $369 billion package.

On Wednesday, automaker giant Stellantis also shared plans to produce batteries in the U.S., and the company said it was already doing so before the IRA passed.

The news comes just weeks after Tesla began working on plans to build a train and freight station at Giga Berlin, set to help commuting employees get to and from the plant and set for completion in Q2.