Battery Recycling at Gigafactory Nevada While Tesla works with third-party recyclers, we are also recycling in-house In the fourth quarter of 2020, Tesla successfully installed the first phase of our cell recycling facility at Gigafactory Nevada for in-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 importance of also building Global annual amount of lithium-ion battery metals sent for recycling recycling capacity in-house to supplement these relationships. Onsite recycling brings us one step closer to closing the loop on by Tesla in 2020: materials generation, allowing for raw material transfer straight to our nickel and cobalt suppliers. The facility unlocks the cycle 1,300 of innovation for battery recycling at scale, allowing Tesla to rapidly improve current designs through operational learnings and to perform process testing of R&D products. Tons of Nickel 400 Every Tesla battery factory will recycle batteries on site Tons of Copper 80 As the manufacturer of our in-house cell program, we are best positioned to recycle our products efficiently to maximize key battery material recovery. With the implementation of in-house cell manufacturing at Gigafactory Berlin-Brandenburg and Tons of Cobalt Gigafactory Texas, we expect substantial increases in manufacturing scrap globally. We intend to tailor recycling solutions to each location and thereby re-introduce valuable materials back into our manufacturing process. Our goal is to develop a safe A closed-loop battery recycling process presents a compelling recycling process with high recovery rates, low costs and low environmental impact. From an economic perspective, we expect solution to move energy supply away from the fossil-fuel based to recognize significant savings over the long term as the costs associated with large-scale battery material recovery and practice of take, make and burn, to a more circular model of recycling recycling will be far lower than purchasing additional raw materials for cell manufacturing. end-of-life batteries for reuse over and over again. “Black mass” awaiting enrichment at Tesla’s recycling facility in Nevada. 26