Tesla has been given permission to continue preparatory work for its Gigafactory Berlin-Brandenburg, which will be located at a 300-hectare site near Berlin, in the municipality of Grünheide.

Tesla had already begun deforestation work at the site, but it was forced to halt last week following a challenge from environmentalist group Green League Brandenburg, which raised warnings about the factory being a threat to local water supplies, among other issues.

On Thursday, the Higher Administrative Court of Berlin-Brandenburg dismissed the challenge, allowing Tesla to continue the work.

A notice from the Court said that this decision is "final."

Announced in Nov. 2019, Tesla's Gigafactory Berlin-Brandenburg is part of the company's plan to greatly increase its presence in Europe, where it currently employs around 5,500 people. The new Gigafactory should become operational in 2021, initially focusing on Model Y production. During this "phase 1," the Gigafactory is expected to produce 10,000 vehicles per week and employ up to 12,000 people, according to Tesla.

On its website, Tesla claims it is "committed to improving the natural environment near the factory and in the wider state of Brandenburg," and that it aims to "replant an area three times the factory plot." The Gigafactory will have a solar roof and will use renewable electricity, Tesla says.

The Berlin Gigafactory will be Tesla's fourth, following the company's Gigafactories in New York, Nevada, and Shanghai.