06:38 14-05-2026

Tesla Boosts 4680 Battery Production at Grünheide with $250M Investment

Tesla is changing its battery cell production plans at its Grünheide factory. Plant manager André Thierig says the company is putting $250 million into building capacity to produce 18 GWh of 4680-format cells per year.

Back in December, the company had announced a capacity of 8 GWh for Grünheide, with production slated to begin in the first half of 2027. Now the project is larger: Tesla plans to hire over 1,500 workers for its battery operations. These hires are expected over the medium term.

Tesla says the move is about boosting vertical integration. Right now, the Grünheide plant relies on CATL LFP cells and LG Energy Solution NMC cells for various Model Y versions. Starting in 2027, Tesla hopes to manufacture both battery cells and EVs on the same site.

Grünheide already houses battery pack assembly that uses 4680 cells made at Tesla's Austin facility. The company also says its German plant recently rolled out the 750,000th Model Y. The factory has a theoretical capacity of 375,000 vehicles per year, and it built over 200,000 units in 2025. Demand for the Model Y has grown, partly thanks to more affordable variants. The model remains central to Tesla's European manufacturing.