US electric vehicle maker Tesla, owned by Elon Musk, will increase its investment in battery cell production at its plant outside Berlin by about $250 million, increasing its capacity target for the site.
Tesla earlier in December announced an investment of about 1 billion euros ($1.2 billion) at the site in Grünheide, southeast of the German capital, as it looks to bring battery cell and vehicle production under one roof from next year.
The investment also reflects broader industry pressure to localize battery supply chains in Europe rather than relying heavily on Asian suppliers.
With the latest investment announced by the company on Tuesday, Tesla plans to create conditions for an annual production capacity of 18 gigawatt hours, up from the previously planned 8 gigawatt hours.
“As battery cell production increases, demand for labor will also increase significantly,” the company said in a statement. The company said it anticipates staffing needs of more than 1,500 employees in battery cell production.
Tesla currently employs about 11,000 people at Grünheide, the company’s only gigafactory in Europe.
Notably, Tesla previously halted some battery-production plans in Germany, but rising demand, tariffs and European industrial-policy support have revived the project.
