In an effort to localize the supply chain as much as possible, Tesla Inc. plans to add recycling capacity for electric vehicle components as well as manufacturing capacities for car structures and electric motor controllers at its Shanghai factory.
Tesla has filed documents with Shanghai authorities describing that it plans to add facilities to repair and reproduce key components such as electric motors and battery cells to its factory in China, according to Reuters. The move aims to comply with local regulations, as well as benefit from lowering the final cost of vehicles. Regulatory authorities in China are adding recycling rules for key components of electric vehicles to save materials and protect the environment. It will also be another link in production that will generate savings.
In addition to adding facilities to repair and reproduce key components, the document also states that Tesla will add manufacturing capacities for car structures and electric motor controllers. This should contribute to an even greater focus on the localization of supply chains, which ultimately will further reduce the cost of vehicles produced at Giga Shanghai. Details of the planned production capacity are not provided.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.