Tesla may have a Gigafactory rival overseas.
Terra E Holding GmbH CEO Holger Gritzka announced that the company would be opening a battery production facility that would rival the likes of Tesla’s, according to Bloomberg.
The company is evaluating five sites in Germany to build its 34 gigawatt-hour battery factory after winning government support for the project, which will reach full capacity by 2028.
Although in the early stages, the construction of this new facility signals that another company may be throwing its hat in the ring with Tesla. For CEO Elon Musk, the news may be invited as it brings Tesla closer to achieving its master plan part deux.
It’s still too early to predict how it could affect Tesla, but if the plant were to come to fruition it could mean the company faces more competition in the Lithium-ion battery production space.
It also falls in line with German businesses getting ready for an EV revolution. Volkswagen and BMW group have already made substantial commitments to producing EVs and electrified options in the near future.
Terra E Holding GMbH could be positioning itself to be a supplier for these major auto companies as their production lines shift to producing electrified vehicles. Then again, Gritzka also said that Terra E will focus Lithium-ion battery production toward mobile and non-automotive power storage markets.
In addition to providing a sustainable power source for EVs, these Lithium-ion batteries — much like Tesla’s — could contribute a major role in charging solar, wind and other forms of renewable energy.
To beat companies like Tesla, Terra E Holding is aiming to fine-tune its process.
“We have to be better in process technology than competitors, a constant step ahead,” said Gritzka.
The CEO went on to discuss how implementing leading German robotics into the production process could accomplish this goal.
As of right now, South Korea’s LG Ltd. and Samsung SDI Co. control the lithium battery market with Tesla slated to grab the number two spot once its 35 gigawatt-hour Gigafactory in Nevada is complete, according to Bloomberg New Energy Finance.
The news of another Gigafactory can be seen as encouraging for sustainable energy proponents around the world.