Interest in Brandenburg spikes after Tesla's gigafactory decision

The German state of Brandenburg has seen a spike in interest among German carmakers following the announcement by electric-car giant Tesla last November that it will build its European gigafactory there, according to the Brandenburg Economy Minister Jörg Steinbach.

Tesla made the announcement that Brandenburg, which encircles the German capital Berlin, will be the location of its factory at the Golden Steering Wheel Award ceremony. The news came as an immediate boost for the region, especially given that both BMW and Daimler had opted for Hungary as the location for their plants.

“We are seeing the traditional German manufacturers, who are opening up more to new technologies, asking whether it is possible to do something in Brandenburg,” said Mr Steinbach in an interview with Reuters.

“They’re asking: What made you interesting for Tesla?” Steinbach said. “We are noticing a pull effect,” Steinbach said when talking about Tesla’s decision.

Fast charging battery company Microvast is to build a new factory in the town of Ludwigsfelde, and chemicals giant BASF is considering constructing an electric car battery cell manufacturing facility in the region, said Steinbach.

Potsdam, the state's capital is home to a renowned university and the fact that the region is close to Berlin - which has reinvented itself as a tech hub - means that there is a pool of talent for companies to draw from. 

Steinbach added that Tesla will no problem finding skilled workers, especially given the cost cutting measures currently being undertaken by rivals BMW, Audi and Volkswagen.

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