“In Brandenburg the auto industry is being reinvented”

Tesla Gigafactory in Grünheide

The first vehicles should roll off the assembly line here from the end of 2021.

(Photo: dpa)

Berlin Brandenburg is becoming the new location for popular technologies in the field of electromobility. The Tesla plant in Grünheide will soon be producing 500,000 electric cars a year, BASF is building a cathode factory in Schwarzheide, and the German-Canadian company Rock Tech is also coming to Brandenburg and building the largest lithium factory in Europe – one of the most important components of electric cars.

The cluster that is forming here could also have a pull on other suppliers, says economic geographer Olaf Arndt from the consulting firm Prognos and explains the state’s success.

Read the whole interview here:

Mr. Arndt, after Tesla and the BASF cathode factory, the largest lithium factory is now to be built in Brandenburg. What is so attractive for companies in Brandenburg?

Several aspects come together. On the one hand, the infrastructure is available in Brandenburg – be it commercial space or the connections to the road or rail network or the international airport BER. With the expansion of renewable energies and the technological change towards electric cars, the region is becoming attractive for companies in the field. There are also enough skilled workers in the immediate vicinity of Berlin. On top of that, there are structural change funds.

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The conditions are similar in other areas, such as Saxony or Saxony-Anhalt. So why Brandenburg of all places?

On a world scale, Saxony-Anhalt would certainly be close enough. In fact, the proximity to Berlin is a special argument for highly qualified specialists.

Let’s assume that Tesla has chosen another location in Germany. Would the lithium factory still come to Brandenburg?

Probably not. In the future, this battery technology also depends on becoming as sustainable as possible and reducing CO2. That means not only processing fresh lithium ore, but also starting recycling. To do this, a lithium factory has to be as close as possible to the battery manufacturer’s sphere of influence – which, in turn, is Tesla. The circles do not have to be quite as narrow as was previously assumed, but such suppliers are usually not located further away than two to three hours.

Olaf Arndt

Olaf Arndt is an economic geographer from the consulting firm Prognos.

That sounds as if more suppliers from the area will flock to Brandenburg in the future.

If the value chain continues to develop as it does now, it can be safely assumed. That is a self-reinforcing effect – a cluster. Companies go where they can also benefit from skilled workers who have been trained or trained by the competition. This is also an argument for skilled workers themselves to come to the region: if you don’t like it with one company, you can switch to the other company. With the fast approval process for Tesla, Brandenburg also has a great advantage over other federal states in terms of experience. With such a reputation you have a location image in Germany and Europe that is second to none.

So will Brandenburg become the new industrial shooting star?

Necessarily. A completely new location for the automotive industry is currently being created there, which will showcase the transformation of the industry in the best possible way. While the traditional locations are more likely to consider what change or demolition they will have to expect, industry is being reinvented there.

More: Raw material for 500,000 electric cars annually – Europe’s largest lithium factory comes to Brandenburg

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