FDI
Top Investments of the Year 2023 in Brandenburg
The Tesla effect and beyond: industry invests 2.5 billion euros in the German state of Brandenburg.
Apr 18, 2024
Brandenburg remains a magnet for investors. Last year, companies invested 2.5 billion euros in the German state – which is a record in the country’s economic development history! This led to the creation of 5,734 jobs. A particular focus of investments continues to be modern mobility.
2023 was another year of growth at Tesla. The company has become the region’s largest industrial employer. By the end of 2023, the GigaFactory in Grünheide was employing 11,500 people – 3,000 more than at the end of 2022. In addition, there has been a strong spillover effect, with a new modern mobility value creation chain emerging across Brandenburg.
On the road to becoming the new automotive land
The Tesla effect is having a noticeably positive impact on the German capital region: since the start of production at Tesla’s e-car factory in spring 2022, the total turnover in the manufacturing sector in Brandenburg has risen by 53% to around 38 billion euros. In automotive production itself, turnover has increased more than six-fold, and now accounts for over a quarter of Brandenburg’s industrial revenue. Before Tesla started production, the share represented by the automotive sector was around 5.5 percent. This is enormous growth – Brandenburg has become the new automotive land.
New value chain in battery technology
Another aspect of the “Tesla effect” is the rapid development of a new value chain for the battery industry. BASF is now producing cathode materials at its Brandenburg plant and is building a battery recycling facility. The Canadian-German company, Rock Tech Lithium, is planning to produce lithium hydroxide, a key cathode precursor. SVolt is planning to build a large cell production facility in Brandenburg. As battery technology expands, so does the need for testing and certification. The DEKRA vehicle inspection company is therefore investing tens of millions in the establishment of a test center for electromobility and battery systems batteries. Brandenburg’s Minister for Economic Affairs, Labour and Energy, Prof. Dr.-Ing Jörg Steinbach, declares, “I am delighted with the continued positive development of the industry. It has given a real boost to growth in Brandenburg.” The renowned Prognos Institute has concluded that Brandenburg is on its way to becoming a new star in the industrial sphere. And as Prognos Vice Director Olaf Arndt says, the region is reinventing the car industry.
Another focus of current investment activity in Brandenburg is state-of-the-art data centers, which are strengthening the state’s digital infrastructure. One US company is building two large data centers south of Berlin and investing billions in the project. To ensure that industry, IT and other sectors can continue to grow, the state of Brandenburg is focusing on strengthening location factors such as commercial space and skilled workers. “The WFBB is playing an important role here, with the implementation of the industrial and commercial space strategy and the provision of services relating to skilled labor and qualification,” emphasizes Dr. Steffen Kammradt, Managing Director of the Economic Development Agency Brandenburg (WFBB).
Locational advantages are attracting investors
The WFBB offers investors a wide range of business and employment promotion services under one roof. To date, this is a unique offer in Germany and is attracting a great deal of interest, particularly from international companies. The region also boasts well-situated commercial and industrial sites, green energy, qualified specialists, a high concentration of science and research, extensive networking structures and professional investor services. Companies additionally benefit from the excellent funding framework, not only for investments, but also for research and innovation and employee training.
Together, the two federal states of Brandenburg and Berlin form Germany’s Capital Region – one of the most dynamic economic areas in Europe. Brandenburg and the metropolis of Berlin are a perfect match for each other.
More: brandenburg-invest.com
