Tesla battery factory proposed for Adelaide at Tonsley Inovation District

Elon Musk’s luxury electric vehicle manufacturer wants to build a factory on contaminated council land in Adelaide’s south – creating “significant” financial benefits.

Tesla wants to build a southern Adelaide factory for repurposing batteries, in addition to a servicing facility and vehicle showroom, in a plan that could create an estimated 100 jobs.

In a letter to residents, Marion Council said the council was approached by developer MAB CCT, which is proposing to build a fit-for-purpose Tesla factory on council land in Tonsley.

The proposal would expand Tesla’s presence at manufacturing hub Tonsley Innovation District, which already hosts a Tesla service centre.

Council said on its site MAB had proposed buying a site comprising Chestnut Court Reserve, owned by Marion Council, in addition to vacant land owned by Renewal SA and the SA Housing Trust.

An area MAB CCT wants to purchase for a Tesla factory, comprising land owned by Marion Council, Renewal SA and the South Australian Housing Trust. Picture: Marion Council

A Tesla dealership in Corte Madera, California. Picture: Justin Sullivan/Getty Images/AFP

It said the proposal would present significant financial benefits to Marion Council through the sale and future rates revenue.

A council spokesman said the public had not had access to the site since 2016 because of contamination concerns.

“These concerns would have to be addressed and/or mitigated by the prospective purchaser,” he said.

Homes at the site were bulldozed in 2018 after high levels of potentially dangerous chemical trichloroethylene, or TCE, were discovered in the air and soil.

The council is seeking feedback on the proposal from residents until April 17.

Tesla shares have taken a hit this year amid owner Elon Musk’s controversial involvement in US politics and the Trump administration.

Tesla was contacted for comment.

Originally published as Tesla battery factory proposed for Adelaide at Tonsley Inovation District