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ECONOMY

‘Tesla isn’t above law’: Gigafactory construction near Berlin halted amid environmental concerns

US automaker Tesla was forced to suspend forest clearing for a new German plant Tuesday after environmentalists won an injunction over threats to the habitats of resident lizards and snakes.

'Tesla isn't above law': Gigafactory construction near Berlin halted amid environmental concerns
Cut down trees on the Tesla construction site. Photo: DPA

The electric vehicle giant ran into opposition from two nature conservation groups which launched urgent court action against the felling of 83 hectares (205 acres) of pine trees for its huge “gigafactory” plant at Gruenheide, south of Berlin.

READ ALSO: Birds, bats and ants evicted for new Tesla plant near Berlin

The news risks delaying the company's hopes to roll its first electric cars off the assembly line at the site in July 2021.

The administrative court in Frankfurt an der Oder told AFP it issued an interim injunction Monday “imposing a temporary halt to clearing” to allow for an examination of the case “in view of the rapid progress of the clearing work”.

A final decision on the complaint filed by the Brandenburg state chapter of the Nature and Biodiversity Conservation Union (NABU) and Green League is still pending.

Among the concerns was the destruction of habitats of protected species of sand lizards and smooth snakes in the area, or disturbing them during their winter hibernation.

“Tesla cannot and must not place itself above the law,” said Heinz Herwig Mascher, chairman of the Green League in Brandenburg, in a statement.

The site of the Tesla factory. Photo: DPA

Despite the energy-saving image of Tesla, run by eccentric billionaire Elon Musk, the plant has long been in environmentalists' crosshairs.

In February, a court temporarily halted deforestation work over the alleged impact on wildlife and concerns it might harm the drinking water supply.

Work was also stopped earlier this year as authorities defused seven World War II bombs discovered at the site.

Tesla's first site in Europe still only has provisional construction permits, and has been authorised by local officials to begin work at its own risk, pending final authorisation.

READ ALSO: Tesla to build 'world's largest' battery plant near Berlin

Tesla said the land covered under the latest injunction must be cleared to allow for pipelines and storage, according to the Tagesspiegel newspaper.

Last week, Tesla was allowed to start installing machines in the gigafactory's paintshop, with the vast factory planned to churn out 500,000 Model 3 sedans and Model Y SUVs per year.

Musk recently announced the company was looking to build the world's largest battery factory at Gruenheide alongside the car plant.

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

READ ALSO: 

The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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