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Tech May 24, 2024

Tesla’s ‘milestone’ mega battery factory breaks ground in Shanghai

Tesla has started building a new Megapack battery factory in Shanghai, expected to begin mass production in early 2025. The factory will produce 10,000 Megapack units annually, providing nearly 40 gigawatt hours of energy storage to stabilize power grids and prevent outages. Covering 200,000 square meters, the plant represents a $203.94 million investment and is Tesla’s first such facility outside the U.S. and its second plant in Shanghai.

Tesla’s vice president Tao Lin described the project as a milestone for both Tesla and Shanghai, highlighting the potential for rapid production and global supply from China. The factory is anticipated to spur an industrial cluster around energy storage in the next three to five years, according to Lu Yu from the Lin-gang Special Area Administration.

Tesla secured initial orders for the Megapacks from Shanghai Lingang Economic Development Group, which will use them for energy storage in a data center, supporting carbon neutrality efforts. Tesla’s energy storage products are used in over 60 countries, with the new factory complementing its existing California facility.

China, a leader in renewable energy, saw its installed capacity surpass thermal power last year, making it a significant market for Tesla. The new factory aligns with Tesla’s broader strategy in China, where its Shanghai Gigafactory, opened in 2019, has become a key vehicle export hub. This expansion follows CEO Elon Musk’s recent visit to China, emphasizing the mutual benefits of deeper cooperation amid China’s robust economic growth and increasing foreign investment.

Source – CGTN

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