Supply Chain While Tesla works with third-party recyclers, we also recycle in-house Recycling Global annual amount of lithium-ion battery metals sent for In 2020, Tesla successfully installed the first phase of our cell recycling facility at Gigafactory Nevada for in- recycling house processing of both battery manufacturing scrap and end-of-life batteries. While Tesla has worked for years with third-party battery recyclers to ensure our batteries do not end up in a landfill, we understand the 1,500 importance of also building recycling capacity in-house to supplement these relationships. On-site recycling Tons of Nickel brings us one step closer to closing the loop on materials generation, allowing for raw material transfer straight to our nickel and cobalt suppliers. The facility unlocks the cycle of innovation for battery recycling at scale, 300 allowing Tesla to rapidly improve current designs through operational learnings and to perform process testing Tons of Copper of R&D products. By the end of 2021, this facility achieved a production rate of over 50 tons of recycled material 200 per week. Tons of Cobalt Every Tesla battery factory will recycle batteries on-site As the manufacturer of our in-house cell program, we are best positioned to recycle our products efficiently to A closed-loop battery recycling process presents a maximize key battery material recovery. With the implementation of in-house cell manufacturing at Gigafactory compelling solution to move energy supply away from the Berlin-Brandenburg and Gigafactory Texas, we expect substantial increases in manufacturing scrap globally. We fossil-fuel based practice of take, make and burn, to a more intend to tailor recycling solutions to each location and thereby re-introduce valuable materials back into our circular model of recycling end-of-life batteries for reuse over and over again. manufacturing process. Our goal is to develop a safe recycling process with high recovery rates, low costs and low environmental impact. From an economic perspective, we expect to recognize significant savings over the long term as the costs associated with large-scale battery material recovery and recycling will be far lower than purchasing additional raw materials for cell manufacturing. 97