Tesla has asked the German authorities in Berlin for permission to expand and modify its factory. If the expansion is completed, the Berlin factory will become Europe’s largest and will surpass Volkswagen’s capacity in Wolfsburg, according to news agency Reuters.

The expansion will help double the production capacity to 1 million cars per year and a battery capacity of 100 gigawatt hours.

According to Reuters, the changes outlined in the application are only at the first of three stages and include construction of a battery cell testing lab and expansion of water recycling facilities.

Previously, there have been objections to Tesla’s factory from local residents regarding the environment and water consumption. In connection with the expansion, Tesla has committed not to use additional water capacity, but instead to reuse the 1.4 million cubic meters of water that the company is licensed to use, says Reuters.

Tesla shares rose 1.8% on the US stock exchange, while competitor Volkswagen fell 0.3% in Germany.