Tesla suspends battery factory project in Germany

Tesla suspends battery factory project in Germany

Tesla suspends battery factory project in Germany

Elon Musk’s group has decided to suspend the project to build a battery factory in Germany. This decision follows the recent passage of new US legislation that encourages the manufacturing and assembly of batteries in the US.

Tesla has suspended plans to build a battery factory in Germany to see how the group can respond to new regulations on subsidies for the purchase of electric vehicles in the United States, according to the Wall Street newspaper.

Washington adopted a text in August that provides tax incentives for manufacturers if batteries are produced and assembled in the United States, the business newspaper recalls in its Thursday edition.

A $ 7,500 grant to purchase an electric car

The law also provides a subsidy for the purchase of an electric vehicle of up to $ 7,500, provided that the final assembly of the cars is carried out in North America and that the raw materials used for the batteries come, in increasing proportion, from the same. region.

But until now Tesla had planned to build a battery factory in Germany, in addition to the car factory already installed near Berlin, with the possibility that some of them will be sent to the United States. Elon Musk’s group is therefore studying the implications of the new American regulations and, in the meantime, is postponing its project to Germany, reports the Wall Street newspaper citing expert sources on the subject.

A lithium refinery project in Texas

The electric vehicle manufacturer filed a file with the Texas public accountant in late August, a few days after the law was passed in Washington, evoking the possibility of building a lithium refinery in this state. The finished product, lithium hydroxide, would be shipped by road and rail to various Tesla battery manufacturing sites in the United States, explains the company, which is seeking tax breaks to carry out its project.

Tesla said, however, that he was still in the “project feasibility assessment” phase and also pointed out that he was also studying the possibility of building a similar site in the state of Louisiana.

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