Tesla to Acquire German battery making company, ATW Automation

Tesla is consolidating its battery manufacturing capacity with acquisitions of companies operating in the space and ATW Automation of Germany fits the bill.



Tesla has announced plans to acquire German battery assembly line manufacture ATW Automation that makes batteries for major automakers, according to several reports.

ATW Assembly & TestEurope GmbH, is a subsidiary of Canadian ATS Automation Tooling Systems Inc., and specializes in building assembly lines for battery and transmission manufacturing for major German automakers, like BMW and Daimler.

ATS, ATW’s parent company, confirmed last month that they had a conditional agreement to sell the company, but have yet to confirm the sale.

However, several German reports confirmed the sale.

ATW Automation Tesla Germany Better Manufacturer

Tesla is currently building its third vehicle manufacturing facility near Berlin, which will also include a battery plant, and aims to start construction on a new vehicle factory in Texas this year. (Image: Tesla Super Charging station; Credit: Shutterstock)

Tesla’s acquisition is a kind of lifesaver for the company, which employs around 120 workers, and was on the brink of closure.

According to a German newspaper The European, the takeover was confirmed in a notification issued by the assembly module building company to its associates where it revealed that a California-based electric vehicle manufacturer had agreed to acquire the beleaguered company.

Tesla, which is based in Palo Alto, California’s Silicon Valley, was not mentioned in the letter. But industry insiders were sure that it was Tesla. The news of the acquisition was celebrated at ATW offices in Neuwied.

Neuwied is very near Tesla Grohmann Automation in Prüm, where Tesla has a major battery manufacturing unit.

Over the last few years, Tesla has invested in companies involved in manufacturing engineering and building machines and batteries such as Hibar Systems, Compass Automation and Maxwell Technologies Inc. in a bid to bolster its battery manufacturing capabilities.

ATW will most likely be absorbed by Tesla Grohmann Automation. Tesla will end its associations with other German manufactures and likely phase out those contracts in order to focus entirely on Tesla’s operations.

The automaker has revealed plans to aggressively up its vehicle and battery production to meet delayed orders and is planning to deploy more production lines in the next few years, both for vehicle and battery production. An addition of 100 plus strong, experienced workforce makes business sense.

Recently Elon Musk showcased the company’s advanced battery technology that will last longer and give more mileage on a charge at its Battery Day event. Musk also said that the new battery technology would help reduce the size of the vehicles by about 10% and extend their range by 56%.

Tesla is currently building its third vehicle manufacturing facility near Berlin, which will also include a battery plant, and aims to start construction on a new vehicle factory in Texas this year. It is also setting up a battery research and manufacturing facility at its largest vehicle factory in Fremont, California.

The aim is to become a supplier to other automakers.

Tesla revealed on Friday that it had delivered a record of 139,300 vehicles globally in the third quarter. The company aims to deliver half a million vehicles by the end of this year, reports Reuters.

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Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine; she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

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