Tesla’s German plant gets approval to start production within weeks

Tesla has received a license to begin production at its electric vehicle factory and adjacent battery plant in Gruenheide, Germany, ending months of delay for the landmark site that was initially supposed to open last summer.

Their first European factory near Berlin is set to produce over 500,000 battery-electric vehicles a year, while the battery plant will generate over 50 gigawatt-hours (GWh) per year, forging ahead of European competitors on both fronts.

The decision was announced on Friday at a conference in Potsdam by authorities in the state of Brandenburg: “This permitting process was a mammoth task for us,” Brandenburg State Premier, Dietmar Woidke, said. “This is a new chapter in our industrial development.”

The decision includes numerous conditions Tesla must fulfil regarding the use of water and air pollution control, two areas of major concern for local environmental groups who fear that the plant will have a negative impact.

Tesla still needs to secure an operating license to be able to start production, a process that is expected to take roughly two weeks. They have to meet requirements listed in the permit, including setting up emissions-monitoring equipment and putting in place measures to protect groundwater reserves and prevent accidents.

Tesla has been constructing the plant, which is close to Berlin, under pre-approval permits. The factory will build Model Y cars. The midsize SUVs are currently being imported into Europe from Tesla’s Shanghai factory. The long-awaited approval is a boon to Tesla CEO Elon Musk, who plans to challenge Volkswagen, BMW and Mercedes-Benz just as they broaden their own EV offerings.

Musk has warned that ramping up the plant will be difficult, partly because it will use lots of new technology. The CEO told local people in October that Tesla targets making between 5,000 and 10,000 vehicles a week by the end of this year. Tesla has hired about 2,500 of as many as 12,000 workers for the site.

Environmental groups have sued local authorities over concerns the plant would use too much water in a region that is suffering from prolonged droughts due to climate change. Officials say the large majority of the local population is in favour of the factory and Brandenburg authorities are backing efforts to drill for more water. “We are aware of the water scarcity. The state does what it can.” Brandenburg Environment Minister Axel Vogel told reporters.

Germany’s largest automaker has the upper hand in Europe, with a 25 per cent share of electric vehicle (EV) sales to Tesla’s 13 per cent.