Tesla Facing A $14.5 Million Fine In Germany Over Battery Recycling

The Environmental Protection Agency sent a notice to Tesla this month, telling the carmaker that they failed to file a report that proves it’s complying with the emissions standards for surface coating on vehicles.

Tesla has disclosed the EPA notice in its Q1 filing, saying that they have responded to all information requests from the EPA and refutes the allegations. The carmaker also added that they don’t expect to have “a material adverse impact” on its business, but the outcome from EPA’s notice is still not determined.

Read Also: Tesla May Have Flouted German Laws, Put Drinking Water At Risk Near Gigafactory

Germany’s environmental agency UBA also issued a fine of 12 million euros ($14.5 million) to Tesla’s subsidiary in Germany, accusing them of not complying with local regulations on taking back and recycling batteries. In its Q1 filing, Tesla argued that it has continued to take back battery packs and that it has objected to the German agency’s decision, so the final amount of any penalties is still undecided.

This isn’t the only issue Tesla is currently facing in Germany, as the carmaker may face more fines from the government there. In a routine inspection by authorities in Tesla’s Berlin Gigafactory, the Brandenburg Ministry of Environment found that the pipes used for plumbing were not suitable for industrial wastewater, posing a threat to the region’s drinking water.

Elon Musk recently criticized the German government for its bureaucracy, accusing it of not understanding the urgency with which his company is fighting climate change. A previous report suggested that the German Gigafactory may not be completed this summer, with Tesla acknowledging back in February that it may not be able to meet construction deadlines.

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