Tesla (NASDAQ:TSLA) has applied for and is seeking regulatory approval to expand its Shanghai plant and begin producing for the first time pouch-type battery cells in limited quantity.
According to an undated public notice, the Shanghai Gigafactory could potentially expand its capacity to manufacture 1.75 million powertrain units per year, an increase from its current production capacity of 1.25 million units.
It’s unclear from the notice, which was posted on the website of the district where the factory is located, whether Tesla is committed to moving ahead with the expansion or is only seeking approval for potential, future capacity.
According to the notice, the automaker is also seeking regulatory approval to manufacture pouch-type battery cells. It further mentioned that an initial trial production line would have an annual capacity of producing 20,000-amp-hours of cells, which is equivalent to the power contained in a single Model Y battery pack.
It was not clear how Tesla would use the pouch cells, which it has not previously used in its electric vehicles.
Pouch cells, commonly utilized in consumer electronics, have a distinct design compared to the cylindrical cells traditionally used by Tesla in their electric vehicles (EVs). In pouch cells, the battery components are enclosed within a flexible metal bag instead of a rigid cylinder. Several automakers, including General Motors (NYSE:GM), employ pouch cells in their vehicles.
Tesla is also looking to set up new facilities to recycle chemicals for waste-water treatment in the plant.
The notice, part of a standard procedure for environmental clearance in China, said Tesla is seeking public comment on the environmental impact of the potential expansion through Wednesday.
According to reports, Tesla is also seeking to ramp up production of cylindrical, 4680 battery cells in China and has brought in new suppliers to cut costs.
Shares of TSLA are up 0.32% in premarket trading on Tuesday.