Tesla ramps up battery cell investments at German gigafactory

FRANKFURT, Dec 16 (Reuters) - Tesla TSLA.O is creating the conditions to produce up to 8 gigawatt hours of battery cells a year at its German gigafactory in Gruenheide near Berlin starting in 2027, the U.S. automaker said in a statement on Tuesday.

"To this end, we are investing another three-digit million amount in cell production," it said, adding this would take total investments in the local cell factory to nearly 1 billion euros ($1.2 billion).

"The aim is to increase the vertical range of manufacture at the site: everything from battery cells to vehicles will be produced at a single location. This is unique in Europe and also strengthens the resilience of our supply chains," Tesla said.

"If the conditions are right, the entire battery value chain will also take place in Gruenheide in the future. In international competition with China and the USA, it is currently hardly possible to produce cells economically in Europe."

The Gruenheide plant, which employs around 11,500 staff, is Tesla's only gigafactory in Europe, a market where the U.S. electric vehicle pioneer has faced dwindling market share .

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