Tesla wants to make the new factory it is building near the German capital Berlin the largest battery factory in the world. That is what the CEO of electric car builder, Elon Musk, said on Tuesday.

In Grünheide, Tesla plans to build approximately half a million Model 3 and Model Y cars every year. It will be the first factory to produce both vehicles and batteries.

Currently, the manufacturer makes its batteries in Nevada, USA, while the majority of cars are assembled in Fremont, California. Last year, Tesla also opened a factory in China.

Musk also announced on Tuesday that Tesla would launch new compact models, especially for the European market, with a more extended driving range.

He did not provide more information about the timing of those new cars. The Tesla boss made the announcements in a video speech at the European battery conference.

In September, Musk already announced plans for a battery with a longer life that would be half the price. He also promises a Tesla that will cost $ 25,000 by 2023, or around 21,000 euros.