Tesla applies to develop Shanghai plant, add pouch battery cell output By Reuters

(Reuters) – Tesla (NASDAQ:) Inc has utilized for regulatory clearance to develop its Shanghai plant and to start producing for the primary time pouch-type battery cells, albeit in small numbers.

An undated public discover stated the potential growth would give the Shanghai Gigafactory the capability to provide 1.75 million powertrain models yearly, up from 1.25 million at present.

It was not clear from the discover, posted on the web site of the district the place the manufacturing unit is situated, whether or not Tesla is dedicated to transferring forward with the growth or is simply searching for approval for potential, future capability.

Tesla didn’t reply to a request for remark.

The automaker can also be searching for clearance to provide pouch-type battery cells, the discover stated, including {that a} trial manufacturing line would have preliminary annual capability to make 20,000-amp-hours of cells, equal to the ability in a single Mannequin Y battery pack.

It was not clear how Tesla would use the pouch cells, which it has not beforehand utilized in its electrical automobiles.

Pouch cells, extensively utilized in client electronics, differ from the cells Tesla has used for EVs in that the battery elements are housed in a extra versatile metallic bag moderately than a inflexible cylinder. They’re utilized by some automakers together with Common Motors (NYSE:).

Tesla can also be seeking to arrange new services to recycle chemical substances for waste-water remedy within the plant.

The discover, a part of an ordinary process for environmental clearance in China, stated Tesla is searching for public touch upon the environmental affect of the potential growth by means of Wednesday.

Tesla’s Shanghai plant, its largest worldwide, produced about 726,000 Mannequin 3 and Mannequin Y automobiles in 2022, greater than half of the automaker’s international gross sales.

Tesla can also be searching for to ramp up manufacturing of cylindrical, 4680 battery cells in China and has introduced in new suppliers to chop prices, Reuters has reported.

Chief Government Elon Musk has stated he would favor to have a surplus of battery cells that could possibly be directed to the corporate’s power-storage enterprise moderately than a scarcity, as a result of operating brief would imply “the factories stall”.

Tesla additionally stated final month it will open a Shanghai manufacturing unit to provide its industrial power storage models often called Megapacks, which can be utilized to retailer energy from renewable sources like photo voltaic.

Every Megapack prices about $1.9 million earlier than set up.