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Tesla faces lithium-ion battery recycling fine in Europe and air quality allegation in US

Tue, 11/03/2020 - 11:42 -- Paul Crompton

Electric vehicle and energy storage system OEM Tesla is facing a legal proceeding related to the alleged breaking of a lithium-ion battery take-back rule in Germany and allegations of air quality violations from its California, US, plant.

The US-company reported both infringements in a report filed to the US Securities and Exchange Commission for the quarterly period ending 30 September, 2020.

The company’s subsidiary in Germany has been ordered to pay a €12 million ($14 million) fine imposed by the Umweltbundesamt (the German Federal Environment Agency) for alleged non-compliance of ‘take-back obligations with respect to end-of-life battery products’. 

The report noted: “This is primarily relating to administrative requirements, but Tesla has continued to take back battery packs, and although we cannot predict the outcome of this matter, including the final amount of any penalties, we have filed our objection and it is not expected to have a material adverse impact on our business.” 

Tesla had not responded to BEST’s request for a comment at the time of publishing.

The company is also in hot water regarding its factory in California. 

The Bay Area Air Quality Management District has issued notices of violation relating to air permitting from the Tesla Factory, but has not initiated formal proceedings. 

The reported noted: “We dispute certain of these allegations and are working to resolve them with the BAAQMD. Further, we assert that there has been no related adverse community or environmental impact. 

“While we cannot predict the outcome of this matter, including the final amount of any penalties, it is not expected to have a material adverse impact on our business. “