Tesla faces day of reckoning on water supply for planned German plant

By Victoria Waldersee

BERLIN – Tesla could lose the water provide contract for its long-delayed German plant if environmental teams win a court docket case difficult a licence granted to its water provider at a listening to subsequent week.

The Frankfurt Oder administrative court docket will hear on March 4 a criticism filed by native teams claiming the Brandenburg environmental ministry carried out inadequate checks earlier than granting the licence to the Wasserverband Strausberg-Erkner (WSE) utility.

If the teams win, WSE stated it should cancel its contract with Tesla, and negotiations will start once more on the place the plant may supply its water – probably a prolonged course of with no assured resolution.

A spokesperson for the court docket stated a choice was anticipated the day of the listening to. Tesla declined to touch upon the case.

An extra delay would put one other spanner within the works for the ability simply as a broader approval course of reaches its ultimate levels.

Elon Musk had hoped to have the plant – key to his ambitions to beat the European market the place Volkswagen at present holds the higher hand with a 25% share of electrical automobile gross sales to Tesla’s 13% – up and operating six months in the past.

Following delays, he stated in October final yr that he hoped to have it operational by December. The corporate has not additional up to date its timetable for the launch.

The teams bringing the criticism, Gruene Liga and Nabu, worry the 1.4 million cubic metres of water a yr Tesla wants for the plant – akin to the utilization of a 30,000-person city – will drain the area of consuming water.

Municipally-run WSE has itself flagged issues over water provide.

Whereas the Tesla plant doesn't use a very giant amount of water – others akin to BASF‘s battery plant just a few hours away use extra – the area’s reserves are finite, WSE spokesperson Sandra Ponetsky stated.

“We're a comparatively water-rich nation,” she stated. “However we want assist from different areas… Which provider has the capability to simply magic that a lot water out of a hat in such a short while interval?”

ABILITY TO EXPAND

The dispute provides to an inventory of challenges confronted by Tesla in latest months, from remembers in China and the US to scrutiny by U.S. regulators of all the things from Musk’s social media posts to accusations of discrimination in direction of employees.

The U.S. automaker reported document automobile deliveries within the final quarter of 2021, however CFO Zach Kirkhorn stated final month that ramping up each the Berlin and Austin crops was wanted to make up for manufacturing misplaced earlier final yr to provide chain and logistics points.

“We’ve deliberately set these factories in areas through which they've a fairly vital quantity of land and skill to broaden,” he stated just a few months prior in October.

However WSE has made clear that even when the court docket permits it to extract the water for Tesla’s first stage of manufacturing, servicing any future enlargement to the plant will likely be not possible with out importing water from different areas.

“We knew we had been reaching our limits – however we predicted we’d get there in 2050,” Ponetsky stated. “By Tesla we had been catapulted ahead 30 years.”

Elon Musk has expressed his irritation at Germany’s advanced paperwork on a number of events, arguing it's at odds with the urgency wanted to struggle local weather change.

However activists in Brandenburg have raised quite a few pink flags towards Musk’s manufacturing facility on environmental grounds, expressing concern about all the things from the bushes cleared for the plant to an endangered snake species on the positioning – and now, water.

“The native populace right here has been advised for years to scale back its water use. Then the richest man on this planet comes alongside and will get all the things laid out at his ft,” Manuela Hoyer, Gruenheide resident and chief of a citizen’s initiative opposing the plant, stated. “There’s one thing flawed with the system.”

The native environmental ministry in Brandenburg maintains there may be sufficient water to service the area and the Tesla plant.

“The native authorities doesn't see consuming water for the 170,000 individuals within the area as threatened,” regional surroundings minister Axel Vogel stated in native parliament in January.

The court docket case is separate to the broader licensing course of Tesla is at present present process for the plant.

The ministry is within the ultimate levels of approving Tesla’s 13,500-page software to start business manufacturing, however will nonetheless take “a while”, a spokesperson stated.

“Even whether it is constructive, the choice could have a three-digit variety of pages, and never within the decrease finish, with many circumstances and necessities,” the spokesperson stated.

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