Tesla's Berlin factory has been opened to a lot of twists and turns, and the water supply contract may have to be torn down and talked about

Feb. 24 -- Tesla's water contract for its Berlin factory may need to be torn down and reintroduced if local German environmental groups question the permits the water company has already obtained at a hearing next week.

Local environmental groups have previously complained that the environmental department of the German state of Brandenburg did not conduct adequate inspections before issuing permits to local utility WSE. The Administrative Court of Frankfurt Aoder will hold a hearing on the complaint on March 4 and hear the complaint in court.

If these environmental groups win, WSE will have to cancel its already contract with Tesla and restart negotiations over where the Berlin Gigafactory gets its water supply. This can be a long process and there is no solution that can be guaranteed.

A court spokesman said a decision was expected on the day of the trial. Tesla declined to comment on the case.

As Tesla's Berlin plant planning approval process enters its final stages, further delays in the water supply contract will create another complication for the plant's construction efforts.

Currently, Volkswagen has a quarter of the market share in the European electric vehicle market, while Tesla has a market share of 13%. CEO Elon Musk had hoped to put the Berlin Gigafactory into operation six months ago, which was the key to his early conquest of the European electric car market.

After several delays in the opening of the factory, Musk said in October that he hoped the Berlin Gigafactory would be operational by December of that year. Now Tesla has not updated the factory opening time.

Gruene Liga and Nabu, the local environmental groups that filed the lawsuit, fear that Tesla's Berlin gigafactory needs 1.4 million cubic meters of water per year, which is equivalent to the water consumption of a town of 30,000 people will run out of drinking water in the area.

WSE, which operates municipally, has itself expressed concern about the water supply.

Sandra Ponetsky, a WSE spokeswoman, said that while Tesla's Berlin gigafactory doesn't use particularly much water and the BASF battery plant, which is a few hours' drive away, uses more water, the local water reserves are limited.

"We're still a relatively water-rich country," she said. "But we need help from other regions ... What water utility has the ability to conjure up so much water out of thin air in such a short period of time? ”

Tesla has faced a series of challenges in recent months, with frequent recalls of its electric cars and U.S. regulators reviewing musk's publicly posted content and allegations that the company discriminates against workers. This lawsuit has undoubtedly added another problem to the company's development.

Tesla said in its latest quarterly earnings report that electric vehicle deliveries hit a record high in the fourth quarter of 2021. But Chief Financial Officer Zach Kirkhorn said last month that production at the Berlin, Germany, and Austin Gigafactory in the United States was needed to make up for the loss of capacity caused by supply chain and logistics issues earlier last year.

Kirkhorn also said in October, "We intend to build these plants where we have a lot of land and capacity to expand." ”

But WSE has made it clear that even if the court allows it to supply water for the first phase of Tesla's Berlin gigafactory, it will not be possible to supply water for further expansion of the factory's later capacity if it does not divert water from other regions in the future.

"We know we're reaching our limits," Bonetsky said. We previously expected to reach this limit in 2050. "The result is Tesla, which puts us 30 years ahead of schedule."

Musk has expressed his anger at Germany's complex approval process on several occasions, saying it is completely inconsistent with the urgency needed to fight climate change.

But activists in the German state of Brandenburg have issued numerous warnings about the Berlin Gigafactory on the grounds of protecting the environment, worrying about trees cut down as a result of the factory's construction, an endangered snake that would otherwise live on the site and water supply problems.

"For years, local people have been told to reduce their use of water. Then the richest man in the world came and put everything under his feet," said Manuela Hoyer, a Glenhead resident and leader of an environmental group that opposes setting up the factory. "There's something wrong with the whole system."

But the local environment department of the German state of Brandenburg insisted that there was enough water supply for local residents and Tesla's Berlin gigafactory.

"The local government does not believe that the drinking water of the 170,000 people in the region will be threatened," Local Environment Minister Axel Vogel said at a local council held in January.

In addition to the pending court case, Tesla is currently awaiting final approval of a planning application for the Berlin Gigafactory.

A spokesman said the local environment authorities were still approving the 13,500-page application documents for Tesla Berlin's super-start commercial production, which was in its final stages, but still needed "some time."

The spokesperson said: "Even if the approval is finally passed, the number of pages in the approval document will be three digits. Certainly not less than this number, because there are many conditions and requirements. ”