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.
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?