Hyperdrive

Tesla Makes US the Focus of Battery-Making Efforts in Blow to Germany

  • The IRA’s aid has fueled concerns Europe may lose out
  • Tesla’s push to make its own cells has run behind schedule
Tesla Inc.’s Gigafactory in Gruenheide, Germany.Photographer: Liesa Johannssen/Bloomberg
Lock
This article is for subscribers only.

Tesla Inc. is prioritizing battery-cell production in the US over Germany because of manufacturing tax breaks included in President Joe Biden’s Inflation Reduction Act.

While Tesla has started assembling battery systems and is preparing to produce individual components such as electrodes at its factory in Gruenheide, outside Berlin, its focus for cell manufacturing currently is in the US because of tax incentives there, the company said in an email.