Tesla will add facilities at its Shanghai factory to repair and recondition parts such as electric motors and battery cells, a document submitted by the automaker to local authorities and seen by the Reuters news agency showed.

The report noted 1.3m electric and plug-in hybrid vehicles were sold in China in 2020 while regulators were starting to mandate recycling of key EV components to save materials.

The document also said Tesla would add manufacturing capacities for car structures and electric motor controllers, Reuters said.

Tesla, now making electric Model 3 and Model Y vehicles in China, is expanding EV component capacity to localise the supply chain. It also added a factory to make EV chargers in Shanghai last year, the report noted.

Tesla did not immediately respond to a Reuters request for comment.

Tesla sold more than 35,000 locally-made vehicles last month in China and is exporting China-made cars to Europe.