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Tesla Plans to Build Battery Recycling Facility at Shanghai Plant

Ding Yi / Apr 27, 2021 06:35 PM / Business & Tech

Tesla plans to build an auto parts recycling facility at its Shanghai factory, showing its commitment to reducing the impact of its products and operations on the environment as China is adding rules to encourage electric-vehicle makers to recycle essential components in a bid to save materials and protect the environment.

The new facility will be used to repair and reproduce key components such as electric motors and battery cells, Reuters reported Monday, citing a document Tesla filed to the local authorities.

Batteries are seen as one of the most environmentally harmful vehicle components if left untreated. Moreover, valuable raw materials used to make the batteries may be reused if the batteries are not fully depleted.

Tesla aside, other carmakers have also begun exploring ways to recycle their batteries, such as Volkswagen, which earlier this year started operations at its first plant for recycling used electric vehicle batteries with a goal of creating a circular process in which more than 90% of each of its batteries is recycled.

According to Reuters, the document also said that Tesla will add manufacturing capacities for car structures and electric motor controllers. It did not give details for the plan.

Tesla, which is under increased pressure in China after a protest by a customer over brake failure during the Shanghai Auto Show last week, has been accelerating localization of its supply chain in China with plans to make more car parts at its Shanghai factory, where it builds Model 3 and Model Y vehicles.

In March, Tesla sold more than 35,000 domestically produced vehicles in China, according to statistics from the China Passenger Car Association, an industry group.

Contact reporter Ding Yi (

Related: Tesla Coughs Up Crash Data to Auto Show Protestor


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