HomeAutomobileTesla suspends battery factory project in Germany

Tesla suspends battery factory project in Germany

Elon Musk’s group has decided to suspend its project to build a battery factory in Germany. This decision follows the recent passage of new US legislation that encourages the manufacturing and assembly of batteries in the United States.

Tesla has put plans to build a battery factory in Germany on hold to see how the group can respond to new regulations on subsidies for the purchase of electric vehicles in the United States, according to the report. Wall Street Journal.

In fact, Washington adopted a text in August that provides tax incentives for manufacturers if the batteries are manufactured and assembled in the United States, recalls the economic newspaper in its Thursday edition.

A $7,500 grant for the purchase of an electric car

The law also provides for a subsidy for the purchase of an electric vehicle of up to $7,500, provided that the final assembly of the cars is carried out in North America and that the raw materials used for the batteries come, in an increasing proportion, from the same. region.

But until now Tesla had planned to build a battery factory in Germany, in addition to the car factory already installed near Berlin, with the possibility that some of them will be shipped to the United States. Elon Musk’s group is therefore studying the implications of the new US regulations and is, in the meantime, postponing its project in Germany, reports the Wall Street Journal citing sources familiar with the matter.

A lithium refinery project in Texas

At the end of August, a few days after the approval of the law in Washington, the electric vehicle manufacturer presented a file before the public accounts auditor of Texas evoking the possibility of building a lithium refinery in this state. The finished product, lithium hydroxide, would be shipped by road and rail to various Tesla battery manufacturing sites in the United States, details the company, which is seeking tax breaks to carry out its project.

Tesla said, however, that it was still at the stage of “evaluating the feasibility of the project” and also noted that it was also looking into the possibility of building a similar site in the state of Louisiana.

Author: TT with AFP
Source: BFM TV

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