Tesla Inc. (TSLA.O) has sought regulatory approval to expand its Shanghai facility and make pouch-type battery cells in limited quantities.
The Shanghai Gigafactory’s capacity would increase to 1.75 million powertrain units per year from 1.25 million, according to an undated public notification.
The notification on the factory district’s website did not indicate whether Tesla was committed to expanding or just requesting approval for possible capacity.
The notification claimed the automaker is seeking approval to build pouch-type battery cells, which would have an initial yearly capacity of 20,000 amp hours, similar to a Model Y battery pack.
Tesla had never employed pouch cells in its electric vehicles, so how it would use them was unclear.
Pouch cells in consumer electronics store battery components in a flexible metal bag rather than a solid cylinder. GM (GM.N) uses them.
Tesla wants to build new waste-water treatment plant chemical recycling facilities.
Tesla is seeking public comment on the expansion’s environmental impact through Wednesday as part of China’s environmental approval process.
Tesla’s Shanghai facility, its largest, produced 726,000 Model 3 and Model Y vehicles in 2022, more than half of total global sales.
Reuters stated that Tesla is increasing the Chinese manufacture of cylindrical 4680 battery cells, adding vendors to lower prices.
“The factories stall” if the company runs out of battery cells for its power-storage business, according to CEO Elon Musk.
Last month, Tesla announced it would build Megapacks in Shanghai, commercial energy storage units that can store solar power.
Pre-installation Megapacks cost $1.9 million.
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