The Ministry for Agriculture, Environment, and Climate Protection in the State of Brandenburg is expected to formally approve the construction plans for the factory toward the end of the year once the relevant applications have been filed.
Environmentalists had expressed concerns about the plant but environmental authorities have received assurances on water usage, according to a local planning consultation panel.
A Tesla spokesman said the company welcomed the assessment of the local water association that construction could proceed, though some environmentalists were still opposed to the plan.
When complete, the factory will build the Model Y crossover and the Model 3 sedan.