Tesla could soon announce yet another international manufacturing facility. The company recently confirmed that it would set up a plant in China to manufacture its electric cars. A new report claims that Tesla is now in talks with authorities in Germany and the Netherlands to potentially build a Gigafactory in Europe. The Gigafactory is a facility where Tesla builds batteries for its electric cars.

Citing officials involved in the discussions, The Wall Street Journal reported today that Tesla is in talks with the relevant authorities in Germany and the Netherlands to build its first major factory in Europe.

Two German states are reportedly courting Tesla to set up its Gigafactory there and the company is said to have held preliminary discussions with both of them. Tesla may be planning to build its cars and its batteries under one roof in Europe.

The scribe does mention that the talks are in early stages at this point in time and that there’s a possibility that they might fall through. Tesla CEO Elon Musk has previously said that he prefers Germany as the first location for the company’s European Gigafactory.

That would make sense given that Tesla already has an engineering division in Pruem, Germany. Tesla hasn’t confirmed or denied this report about its European Gigafactory so far.

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