Tesla, the U.S. electric vehicle and clean energy company, has commenced construction of a landmark Megapack battery factory in Shanghai, marking its first energy storage facility outside the United States. The groundbreaking ceremony took place on Thursday, signaling a significant expansion of Tesla’s investment in the Chinese mainland.
The new factory is set to produce Tesla’s Megapack, a powerful energy storage battery designed to stabilize power grids and prevent outages. According to Tesla, the factory will produce 10,000 Megapack units annually, equivalent to nearly 40 gigawatt-hours of energy storage, and will commence mass production in the first quarter of 2025.
Spanning an area of approximately 200,000 square meters, the facility represents a total investment of around 1.45 billion yuan (about $203.94 million). This factory is Tesla’s second in Shanghai, following the inauguration of its Gigafactory in 2019, which involved an initial investment of over 50 billion yuan.
“I believe the new plant is a milestone for both Shanghai and Tesla,” said Tao Lin, Tesla’s vice president. “In a more open environment, we can create a new Tesla speed at the Megapack factory and supply the global market with large-scale energy storage batteries manufactured in China.”
Lu Yu, an official of the Lin-gang Special Area Administration, expressed optimism about the project’s regional impact. “With Tesla’s benchmark project, we anticipate that within the next three to five years, an industrial cluster centered around energy storage will rapidly emerge,” Lu said.
The establishment of the Megapack factory in Shanghai underscores Tesla’s commitment to expanding its footprint in the Chinese market and contributing to the global transition toward sustainable energy. The project is expected to bolster local economic development and position Shanghai as a significant hub for energy storage technology.
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Tesla's 'milestone' mega battery factory breaks ground in Shanghai
cgtn.com
