Tesla raises its annual cell production plans at Giga Berlin to 18 GWh

Tesla will invest 250 million dollars -about 215 million euros at the current exchange rate- in its European plant located in Grünheide, near Berlin, with the aim of boosting local production of 4680 cells. According to the plant’s director, André Thierig, this investment will allow an annual capacity of 18 GWh to be reached and will create more than 1,500 new jobs.

The plans have evolved rapidly. Last December, the American manufacturer spoke of just 8 GWh with production starting in the first half of 2027. Now, that figure has more than doubled, which makes internal self-supply of batteries for the vehicles built at Giga Berlin more viable.

With this expansion, Tesla seeks to advance the vertical integration of its supply chain. At present, the German plant uses LFP cells from CATL and NMC cells from LG Energy Solution for the various Model Y versions. From 2027 onward, the company aims to produce everything from the cells to the complete vehicle in the same plant, which it considers unique in Europe and which will increase its resilience against possible external disruptions.

The 250 million investment would be added to the nearly one billion dollars already planned for cell production, bringing the total close to 1.2 billion. Although the recruitment of the 1,500 workers will take place in the medium term and the funds will be spread over several years, the announcement represents a considerable boost for the German industry at a difficult time.

Demand for Tesla in Europe is gaining momentum

At the same time, vehicle production continues to grow. The 750,000th Model Y recently came off the assembly line. After a drop in demand in 2025, orders have rebounded, driven especially by the more affordable versions. For this reason, Tesla will hire around 1,000 additional employees before the end of June. Once these hires are complete, the workforce at the vehicle plant will be around 11,700 workers, to which those of the new cell line would be added.

Giga Berlin has a theoretical production capacity of 375,000 vehicles per year, and more than 200,000 units came off its assembly line in 2025. With the sales recovery observed in March 2026 both in Germany and in the rest of Europe, Tesla is reinforcing its commitment to Grünheide as one of its key centres worldwide.