Giga Berlin's New Situation: EU's Demands from Tesla 4680 Batteries

Tesla has rejected around $1.5 billion dollars worth of funding from the EU for Giga Berlin’s 4680 battery production. The problem is the “first industrial deployment” close in EU’s demand. (Elon’s comment

This means if Tesla accepts the money from the EU for the Giga Berlin’s 4680 battery factory, it needs to start producing the 4680 batteries in Giga Berlin first. Yet, Giga Berlin is delaying and Tesla may want to start making 4680 battery cells elsewhere, like at Giga Texas.

The EU (European Union), a collection of European countries adopting the Euro as a currency, has required that any sites in receipt of funding must be the “first industrial deployment” of the technology, according to official documents, meaning the 4680 batteries Tesla produces cannot already be made at another Tesla plant.

But legal challenges to the construction of the plant have delayed its opening by several months, meaning the company, whose valuation hit $1 trillion earlier this year, is likely to begin producing the same batteries elsewhere sooner.

If you listen to the latest Tesla Daily video from Rob Mauer, you’ll note that $1.5 billion is just a few weeks of operating cash flow for Tesla. Since Tesla is making a nice profit and has plenty of cash, it doesn’t need to bend to the stipulations of the EU to only make the 4680 batteries in Giga Berlin.

This is just more delays and red tape for Giga Berlin to open. It’ll be a miracle if Giga Berlin is even able to make a single car for a customer this year due to all the hoops Tesla is having to jump through to get things going.

Tesla Giga Berlin battery production. Giga Berlin 4680 battery cells. Tesla rejects EU funding for Giga Berlin’s 4680 battery production.


This is Armen Hareyan from Torque News. Please follow us at on Twitter and for daily automotive news.

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