According to a statement released today, Tesla has formally opened its new Megafactory project in Shanghai, which will generate 10,000 Megapacks annually.
The corporation referred to the launch of the project as a “milestone project” and staged a signing ceremony for the project’s land acquisition on Friday morning in Shanghai.
The Megapack is a potent battery that helps maintain grid stability and avert power outages by storing and supplying energy.
On April 9, Tesla and the Lingang authorities in Shanghai inked an agreement for the construction of a new Megafactory there that would be used exclusively to produce the Megapack energy storage product.
The Megafactory is going to be the first factory for Tesla’s energy storage systems located outside of the US. Around 40 GWh of energy storage will be produced annually in up to 10,000 commercial energy storage batteries that will be sold on the international market.
The Lingang Special Area Administration announced in April that construction of the plant was set to start in the third quarter of 2024, with production to follow in the second quarter.
According to today’s report, there has been a small delay in the commencement of work.
In addition to the facility, Tesla’s Shanghai Gigafactory, China’s largest producer of electric vehicles (EVs), is situated in the Lingang neighbourhood. The EV plant is now Tesla’s largest production facility worldwide. It started operating in late 2019.
The primary business sectors for Tesla are electric vehicles (EVs) and renewable energy, which is further subdivided into solar and energy storage devices, which are presently offered as the Powerwall, Powerpack, and Megapack.
According to Tesla’s website, each Megapack unit has the capacity to store more than 3 MWh of energy, which is equivalent to 3,600 houses’ worth of electricity for an hour.
Chinese consumers will be able to purchase Tesla’s energy storage battery goods, according to a story published on December 6 by the local media outlet LatePost.
The company, which is presently focused on the US market, brought in $1.56 billion in sales in the third quarter, or 7% of total revenue, according to the article. The energy storage items planned for sale in China are expected to help Tesla expand other sources of revenue and profit.
According to LatePost, which cited conjecture from industry sources, Tesla’s Megafactory in Shanghai will initially purchase batteries from CATL and may eventually transition to manufacturing its own batteries.
