Tesla to decide the Gigafactory 2 location in Europe next year

Tesla Gigafactory 1 rendering

While the world has become a global market, localization is still important to reduce costs and delivery time. It was clear that Elon Musk, CEO of Tesla wanted to localize the production since he start calling the Tesla Gigafactory in Nevada, USA, the Gigafactory 1.


According to electrek Tesla will choose the location of Gigafactory 2 next year.

“Musk confirmed that Tesla plans to choose a location for ‘Gigafactory 2’ in Europe next year and he added that the factory will combine both the production of batteries and complete cars.”


Tesla also acquired Grohmann Automation in Germany to help further automation of current and future Tesla factories.

The acquired company will become Tesla Grohmann Automation. This acquisition of justified by Tesla:

“After increasing our output target to 500,000 cars per year by 2018, we began searching for the best engineering talent in automated manufacturing systems. Today, we are excited to announce that Tesla has entered into an agreement to acquire Grohmann Engineering, a world-renowned engineering company in Prüm, Germany, which will become Tesla Grohmann Automation.”


It will be interesting to see European countries trying to get Tesla Gigafactories. I see Portugal and Spain as two major candidates for the investment. One of the reasons Tesla chose Nevada for the Gigafactory 1 is the high solar radiation that enables the factory to become sustainable with solar power.


Let’s see the photovoltaic solar electricity potential in Europe.

Solar radiation and photovoltaic electricity potential in Europe

Solar radiation and photovoltaic electricity potential in Europe


Maybe I’m biased but to me Portugal seems to be the perfect choice. The Portuguese south region of Alentejo is vast, the land is cheap and there is plenty of sun. Portugal is also a country with a lot of know-how regarding electric mobility. The Portuguese company Efacec is one of the biggest makers of DC fast chargers for electric cars.

Spain is also a strong contender, the biggest difference is that the Portuguese Prime Minister António Costa is a strong supporter of electric cars, while the Spanish Prime Minister Mariano Rajoy is not.

Not to forget that Portugal and Spain are also great markets to sell the Tesla powerwalls and solar panels/tiles.


It’s still unclear if Tesla will build electric cars, batteries, powerwalls and solar panels/tiles in the same Gigafactory in Europe or use different locations.


While Portugal or Spain might get the first Gigafactory in Europe, there will be more. Elon Musk says that Europe can get as much as three Gigafactories. Now it’s time for German automakers start to worry…


What do you think? Which country is most likely to get the first Tesla Gigafactory in Europe?



More info:

Tesla plans to choose location for ‘Gigafactory 2’ in Europe next year, will produce both batteries and cars



Pedro Lima

My interest in electric transportation is mostly political. I’m tired of coups and wars for oil. My expectation is that the adoption of electric transportation will be a factor for peace and democracy all over the world.

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5 years ago

Likely they will build a plant where they will be offered more economical benefits for it.

5 years ago

Portuguese Electrotechnical Engineering student Tesla fanboy here. You know my opinion about this…

5 years ago

South coast UK now its not a part of the EU (for long). UK government will offer plenty of sweeteners.

UK builds all European built Nissan leafs so all the tech is there and yes the UK does get some sunshine 🙂

5 years ago
Reply to  Buzzar

Sorry, Brexit is the proverbial shooting of the foot for England. But at least the migrants will be rid of.
Rep of Ireland should also be considered as a candidate, along with Portugal.

Hugo Hvidsten
5 years ago

Tesla should look at southern part of Sweden (Malmø/Lund area) for their next Gigafactory.

Sweden has it all (and that is not easy for for me to say – being a Norwegian…)
– Stable economy, stable political system.
– Geographically, by air/ship/road/rail, southern Sweden has a very central location in Northern Europe – and to Russia.
– Long tradition of car manufacturing.
– Long tradition of truck manufacturing.
– Long tradition of robotics industry.
– Full access to labor/engineering resources from all over Europe, the Malmø/Copenhagen area is a very attractive place to live for Millennials from all over the world.
– Sweden is already the European R&D hub for 2 major Chinese Car/EV manufacturers; NextEv (Saab) and Geely (Volvo, London Taxi Cab)
– Clean energy. A lot of nuclear power on the grid today, but as the nuclear will be wound down in the coming 5-10 years that will be replaced mainly by wind from Denmark and Sweden, and hydro from Norway.

Fernando Marques
5 years ago
Reply to  Hugo Hvidsten

I don’t believe that, there are other countries long known as manufacturers. And most importantly Tesla/Solar city will be certainly looking for the sun as the power for the GF. So southern countries would be the obvious choice.
-Lower wages
-Lots of sun
-“Long tradition manufacturing ” – whatever this means
-Similar to Nevada landscape
-Almost all European countries have good access by air/road/rail. Don’t even understand why that’s a plus on Sweden. I would see easily a factory on Poland or Hungary if they were looking for a central point in Europe.
Bottom line is that the country who offers better tax incentives will be chosen..

5 years ago

Tesla will only choose northern european countries if, instead of sun in their GF roof they’ll want snow… LOL… For me it’s obvious that the GF has to be built in a place with plenty of sun hours/year. And we cannot forget another important issue: Portugal has the biggest reserves of lithuim in Europe!

Henrique Henriques
5 years ago

Portugal … Was not this little country that surprised the world with the technological revolution of discoveries?
Is not this small country rich in sun, wind, and other resources?
Would not it be almost poetic to dream the future from where the past began?
Ps: Portugal is the nº1 lithium producer in Europe.

5 years ago

What about Finland? Vaasa has announced they will make a proposal. Vaasa is the cleantech cluster for the Nordics. Not to mention a huge Lithium deposit. Plus there are strong solid state technology skills in Finland.
There will be many gigafactories needed. This contest is just the beginning…

Daniella Ravani
5 years ago

Portugal! Good climate and far from the problems of Europe.

4 years ago

If we didn’t have this failed government and the bureaucracy, Greece would also be a very good choice for the GF. LOTS of sun, small wages, lots of new engineers with PhDs that are now flowing abroad..

4 years ago

Sweden of course, or another of the nordic countries, everything else is just stupid.

4 years ago

I would select Zeebruges in Belgium:
– biggest car distribution harbor
– close to the UK with a good connection to the Bristol and Hamburg ports
– good rail network to connect with Germany, France, Poland, Switzerland and many other markets
– close to the european warehouse of Bridgestone for tires
– beside soler energy, great for windmill energy
– known harbor for the main car ships like Wilhelmsen and others
– just opened up the A11, a brand new high way to connect also in the market with trucks, and has a bridge in it to allow boats to transport cars even over water
– good education system which provides strong skilled employers
– close to Tilburg where the battery factory is
– international POE facilities by ICO (e.g. installation of accessories, car papers, etc …)
– even an international head office would be helpful for European Union lobby (Brussels is only 1h15 away by train) and meetings with the ACEA
– space is still reasonably cheap for industry
– no traffic jams for the staff to expect in that area
– several sub-supplier have office there too (Daikin, Varta, Bridgestone …)
– Belgium, Netherland, France are key market to develop electrical vehicles, hence a centralized presence can stimulate this.

4 years ago

And almost forgot to mention:
– a long term history of car assembly in Belgium with VW/AUDI and Volvo still today and in the past Renault, Opel (GM) and Ford (those last decided to leave during reorganizations and credit crises years)