Tesla has officially confirmed a significant expansion of its battery production capabilities in Europe. According to André Thierig, Senior Director of Manufacturing at Giga Berlin, Tesla will invest close to €100 million to ramp up battery cell production at the German factory.
The goal is to reach an annual capacity of 8 Gigawatt-hours (GWh) by 2027.
Cell to Vehicle
André celebrated the move as a major step towards total vertical integration, posting this on X.
Such a great day for Giga Berlin!
— André Thierig (@AndrThie) December 16, 2025
Today, we informed our great Cell Team that we will invest close to 100m to enable 8GWh of cell production starting in 2027! Vertical integration at its best! From cell to vehicle in one factory - unprecedented in Europe! The future is great!…
Currently, Giga Berlin produces the Model Y, but relies on imported cells (mostly from China and the US) for assembly. By finally bringing cell production on-site, Tesla aims to strengthen supply chain resilience and further reduce dependence on external logistics.
NEWS: Tesla has announced that it is ramping up 4680 battery cell investments to produce up to 8 gigawatt hours of battery cells a year at its Giga Berlin factory starting in 2027.
— Sawyer Merritt (@SawyerMerritt) December 16, 2025
"The aim is to increase the vertical range of manufacture at the site: everything from battery… pic.twitter.com/aqldSOEhxB
Investing in the Future
While the €100 million is significant, a Reuters report clarifies that this is part of a bigger picture. This fresh injection of capital takes Tesla’s total investment in local cell production to nearly €1 billion.
Tesla’s official statement to Reuters also included a note of caution regarding the European industrial climate. It noted that while the goal is full localization, "in international competition with China and the USA, it is currently hardly possible to produce cells economically in Europe."
Despite these economic headwinds, the commitment to 8 GWh suggests Tesla is playing the long game in Berlin, ensuring that its only European Gigafactory remains self-sufficient.
