Tesla has officially inaugurated its Megafactory project in Shanghai, marking a milestone for the company’s entry into energy storage production in China. The factory, dedicated to producing the Megapack—a powerful grid-stabilizing battery—will have an initial annual production capacity of 10,000 units. The Megapack is designed to store and supply energy, contributing to grid stability and preventing power outages.
The signing ceremony for land acquisition took place in Shanghai, with the Lingang area chosen for the new Megafactory. This marks Tesla’s first energy storage system factory outside of the United States. Initially planned to produce up to 10,000 commercial energy storage batteries per year, the factory aims to contribute nearly 40 GWh of energy storage to the global market.
While the construction was initially scheduled to begin in the third quarter, the latest update indicates a slight delay. Production is expected to commence in the second quarter of 2024, according to the Lingang Special Area Administration’s announcement in April.
The Lingang area is already home to Tesla’s Shanghai Gigafactory, the company’s largest production site globally, producing electric vehicles (EVs) since late 2019. The addition of the Megafactory enhances Tesla’s presence in the energy storage market, complementing its electric vehicle and renewable energy offerings.
Tesla’s Megapack is a substantial energy storage solution, capable of storing over 3 MWh of energy. This amount is sufficient to meet the electricity needs of 3,600 households for one hour, as per Tesla’s specifications.
In addition to its electric vehicles, Tesla’s business portfolio includes renewable energy products, categorized into solar and energy storage units. The Megapack joins other energy storage offerings like Powerwall and Powerpack.
Local reports suggest that Tesla’s energy storage products, including the Megapack, will be sold in China, expanding the company’s revenue sources and market presence. Initially, Tesla’s Megafactory in Shanghai is expected to source batteries from CATL, with potential plans to transition to producing its own batteries in the future.
