Ongoing Dispute Over Water Agreement for Tesla's Factory

The negotiations regarding a new water agreement between Tesla and the local water supplier, Wasserverband Strausberg-Erkner (WSE), continue to be protracted and complex. Despite ongoing discussions, a resolution remains elusive. In December 2024, a contract proposal was sent to Tesla; however, the company did not accept the terms offered.

This afternoon, the WSE's assembly is convening in a closed session to further discuss the contentious water contract, which primarily hinges on pollution threshold values. Nevertheless, a conclusion on this matter seems unlikely to emerge from today's meeting in Strausberg.

The current discussions revolve around contractual attachments that were sent to Tesla, which the company has rejected as the final negotiation status. The WSE assembly's chairman, who is also the mayor of Fredersdorf-Vogelsdorf, indicated that while discussions on the details will take place, no binding decisions are expected. He emphasized the need for compromise between Tesla and the WSE.

As part of its efforts to reduce environmental impact, Tesla has decreased its water consumption at the Grünheide facility. This reduction has altered the quality of wastewater, which is a critical factor in the negotiations. The primary issues involve raising the pollution limits for wastewater emitted from the plant, necessitating the renegotiation of the water contract. Tesla's factory in Grünheide has been producing electric vehicles since March 2022 and is the company's only manufacturing site in Europe.

The negotiation process regarding the new water contract has been ongoing for a year and a half. WSE's management has previously expressed concerns that only Tesla's interests have been prioritized in the discussions. However, the final decisions rest with the assembly representing the water supplier, composed of 16 member municipalities.