Although Germany’s economy as a whole has weakened this year, Brandenburg’s is moving in the opposite direction, and Tesla is a “driving force” behind that.
“In recent years, this area has developed into the industry with the highest sales and employment in the state of Brandenburg, which is largely due to the ramp-up of production at Tesla,” Jörg Steinbach, Economics Minister of Brandenburg, said. “But it’s not just the company, but also the grown supply industry and the battery materials industry.”
Brandenburg’s gross domestic product (GDP) has increased by 6 percent this year, and if you don’t take inflation into account, growth was actually greater than 14 percent, according to Rbb24.
Gigafactory Berlin has ramped production to over 5,000 vehicles per week, and its roughly 11,000 workers are contributing greatly to the area’s struggling economy.
An outlier in the country’s economic scope, Brandenburg has moved in a positive direction while the rest of Germany has seen a 0.3 percent decrease in economic output as a whole.
While Tesla is one of the major contributors to Brandenburg’s economy, it is not the only one. The Berlin-Brandenburg Association of Business, or UVB, said, “It’s not just Tesla that needs to be mentioned here.” Its managing director, Alexander Schirp, said that a “growth core is being created here that will bring a boost and new prosperity to the entire region.”
Tesla is still looking to expand its footprint in Brandenburg as well, as it plans to expand the German factory to build battery cells and more vehicles on an annual basis.
The project is still awaiting approval, but it would bring annual vehicle production to 1 million units, and double the capacity of its battery production facility to 100 GWh from 50.
The major concern is water use, and the Strausberg-Erkner Water Association (WSE) has been the group that has placed a bottleneck on the project.
Nevertheless, the project will likely be figured out, and Tesla’s economic contribution to the area will be even larger than it is now. More people will find employment at the Giga Berlin plant in some capacity, and it will contribute more to the local economy, hopefully triggering a stronger reaction from the struggling German economy.
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