Tesla CEO, Elon Musk, recently revealed plans to open a second Gigafactory somewhere in Europe and this could be just north of Prague.

Musk confirmed that Tesla plans to choose a location for ‘Gigafactory 2’ in Europe next year and he added that the factory will combine both the production of batteries and complete cars.

Gigafactory 1, which is located in Nevada, is still under construction, but it’s where Tesla plans to build the battery cells that power its vehicles, including the Model 3, and its energy products.

“This is something that we plan on exploring quite seriously with different locations for very large scale Tesla vehicles, and battery and powertrain production — essentially an integrated ‘Gigafactory 2,’”


Why choose the Czech Republic?

Firstly, the Czech Republic has huge deposits of lithium; the core ingredient of the Tesla battery. In Dubi, northern Bohemia, about 330,000 tons of lithium lies underground and work has started in the area to begin the extraction.

Secondly, skilled labor costs a lot less and the resources needed to maintain and run the factory would be far cheaper than almost anywhere else in Europe.

The announcement is due to be made next year.