After confirming Gigafactory 3 in China, Tesla is reportedly in talks with local governments in Germany and the Netherlands to secure a location for ‘Gigafactory 4’ to produce batteries and electric vehicles in Europe.

The Wall Street Journal reported the news based on anonymous sources:

“[Tesla has] preliminary discussions with two German states vying to host a so-called Gigafactory in Europe to build electric cars and their batteries under one roof, officials involved in the talks said.

The talks are still in their early stages, and might not yield an agreement, the officials said. Tesla has also discussed an option to build the plant in the Netherlands, said a Dutch government official, who declined to say if that option is still being pursued.”

It’s not exactly surprising considering Tesla CEO Elon Musk recently mentioned that Germany was in the lead for a European Gigafactory.

He said when talking about the factory plan:

“Germany is a leading choice for Europe. Perhaps on the German-French border makes sense, near the Benelux countries.”

The electric automaker already has a factory in Europe which is located in Tilburg in the Netherlands, but it is only used for ‘final assembly’ of Tesla’s Model S and Model X vehicles.

Musk has been talking about a full battery and vehicle factory in Europe for a while now.

Several European countries have even launched campaigns to try to attract Tesla to their home market.

Tesla was supposed to confirm a location for a factory in 2017, but it never happened.

We still don’t have an updated timeline for the factory, but the alleged talks with local governments would be an interesting step closer toward a local factory in Europe.

Tesla also recently closed a deal for Gigafactory 3 in China, where they plan to start production in two years. Another Gigafactory is also reportedly planned in the US to produce the Model Y.

It would add up to 3 new Gigafactories, where Tesla would produce both batteries and vehicles, currently in the works.

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