Tesla is expanding its energy storage business in China through the construction of a Megafactory located in Shanghai's Lingang area. This facility will enable Tesla's flagship storage product to be available on one of the world's largest electric vehicle markets: Shanghai.
Tesla Motors has officially confirmed via its social media accounts that Tesla and Shanghai's Lingang special administrative signed an April 9 agreement to build a Megafactory. This marks Tesla's first venture into energy storage manufacturing outside the US.
Construction for the facility will commence in Q3-2023 and production is anticipated to commence by Q2-2024. With a capacity of 10,000 units annually and nearly 40 gigawatts of energy storage, Megapacks created at Shanghai Megafactory are expected to be exported abroad.
Last month, Tesla posted a job listing for a Megapack manager position in Shanghai as part of their energy storage project. Elon Musk, Tesla CEO, shared on Twitter that this new facility would increase production at their first Megafactory (Lathrop, California).
Tesla opening Megapack factory in Shanghai to supplement output of Megapack factory in California https://t.co/hDpqoyNeOx
— Elon Musk (@elonmusk) April 9, 2023
Shanghai's Lingang area is home to the Gigafactory Shanghai, which produces Model 3 sedans and Y crossovers. Opened in 2019, this plant has become the world's largest producer of electric vehicles (EVs). Additionally, it serves as Tesla's primary vehicle export center.
The Megapack is an advanced system of batteries designed to store large amounts of energy. According to Tesla's official website for their flagship battery system, each Megapack has a capacity of over 3 MWh - enough power for approximately 3,600 homes per hour. In California, for a 2-hour unit in California, the Megapack retails for $1,879,000 while installation on similar-specced lithium batteries costs $2,669,000.
Tesla Megapack batteries have garnered considerable attention. Their delivery date is listed as Q1 2025 on Tesla's official order page.
Zhuang Mudi, the Shanghai municipal government's Deputy Secretary General, noted that Tesla's Giga Shanghai Project five years prior had gained international attention and cemented Shanghai as a leader in developing electric vehicles. He expressed hope that Tesla Megafactory would have an equally beneficial effect.
Zhuang expressed, "Today we witness the signing of Tesla Megafactory projects. This will be a significant boost for Shanghai's energy storage industries and green low carbon transformation."
