Tesla Reveals The Arrival Of A New Megafactory in China

It’s a wise strategic choice to build Megapack manufacturing in China.

Sadrettin Akpınar

April 10, 2023 2:15 AM
Last Update: April 10, 2023 2:15 AM

Tesla has made a fresh announcement on the construction of a Megafactory in Shanghai, China, to produce energy storage commodities for the market.

The company revealed its Master Plan 3 at Investor Day, which included the expansion of energy storage battery capacity globally as one of its main elements. The company already operates a Megafactory that creates Megapacks. It is in the United States. The manufacturer, however, continues to advance since it is obvious that this will not be enough to fulfill the demand, which is clearly still increasing quickly.

Megapacks, a large battery system utilized in extensive energy storage projects for electric utilities throughout the globe, are the exclusive focus of the plant’s operations. It is boosting Gigafactory Nevada‘s output and increasing capacity by up to 40 GWh yearly, which is more than all stationary energy storage combined in the world.

Despite the increased production capacity, Tesla still has a backlog of orders for Megapack that dates back approximately two years. This is because the product has become the standard for electric utilities looking to implement energy storage on a massive scale to stabilize their grid or better use renewable energy sources, such as solar power.

With the announcement of a new Megafactory in China, Tesla is now increasing capacity even further:

Related Article: Tesla’s BESS Factory in Lathrop, California is Almost Ready

The project is a precise copy of the 10,000 Megapacks per year, or 40 GWh, Megafactory in California. As it did in Lathrop, Tesla also intends to build the plant at a breakneck rate, with work set to begin on it in the upcoming quarter and the commencement of production anticipated in Q2 2024.

The company has said it intends to export the Megapacks made in China worldwide. Thanks to this, Tesla will be able to establish manufacturing centers for essential energy products on both sides of the globe.

Elon Musk, the CEO of Tesla, is reportedly in China this weekend to finalize the agreement and meet with government representatives. According to speculations, Tesla is also trying to negotiate a contract to put its Full Self-Driving Beta on the market.


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