Tesla moves battery production from Germany to the U.S.

American company Tesla began to move its battery production facilities from Germany to the United States. The company believes that the production of batteries in the United States will be more relevant, since the local legislation allows for a tax break of $7,500.

For the past three years, Tesla has been working on a new format battery cell, the 4680 battery. This project is critical to the company's long-term growth. The 4680 batteries will be used for the next generation of electric cars.

Tesla currently produces the batteries at a pilot plant in Fremont, California, and the company has also begun rolling out production at gigafactories in Texas and Germany.

Last year, however, the media reported that Tesla was having trouble organizing battery production at its Berlin plant. At the time, the company was considering relocating battery production equipment to Texas. Tesla's current decision was influenced by the terms of a $7,500 tax credit if automakers purchase batteries in North America.

In addition, Tesla is able to take a $45 per kWh battery manufacturing credit in the U.S., which is not available in Germany. The company receives a subsidy of more than $3,600 for each Model Y 81 kW⋅h battery pack produced.

Brandenburg's Ministry of Economics released a statement that confirms Tesla is starting to produce battery components at its Berlin plant, but is suspending production of complete cells.

The company had earlier confirmed that it was ramping up production of the 4680 battery at its gigafactory in Texas. These batteries are intended for the new Model Y and the launch of the Cybertruck electric pickup in late 2023.