Tesla is planning to add new manufacturing shops dedicated to expand auto parts production in its Shanghai Gigafactory, according to Tesla's environmental impact assesment report released on December 22nd. 

Photo credit: Tesla

The report is for environmental evaluation on Tesla’s Gigafactory Project I) Phase I- Auto Part Manufacturing Technique Upgrade. The EV maker said that in order to meet its export demands, Tesla plans to improve its auto parts manufacturing capacity by building new workshops, and hiring more workers. 

In fact, Tesla’s Shanghai auto part production project started in March 2020, as a promise to the Chinese government for localization. On the other hand, switching to a Chinese supply chain helps the company shorten its import cost, and makes global resource allocation easier. 

The report showed Tesla facilitated a plan to adopt several manufacturing techniques, such as power battery and electric drive assembly, to produce key parts of electric vehicles. The company aims to produce 260,000 sets of battery packs, electric motor systems, and electric controllers annually.  

Phase I of the project has already completed in September 2021, with an estimated acceptance inspection at the end of February 2022.

Additionally, Telsa’s previous construction project for localized new model testing is scratched in the latest report. The project was originally set to conduct tests and research on new models in existing workshops in the Shanghai Gigafactory.