Tesla has announced plans to build a Megafactory in Shanghai, China to expand its capacity to produce Megapacks, a large battery system used in large-scale energy storage projects for electric utilities around the world. The new factory will have a production capacity of 10,000 Megapacks per year, or approximately 40 GWh. Construction will begin next quarter and production is expected to begin in Q2 2024.
Our next Megafactory will be in Shanghai—capable of producing 10k Megapacks per year pic.twitter.com/KlVGq5gYOg
— Tesla (@Tesla) April 9, 2023
The new Megafactory in China will complement production from the Gigafactory in Nevada and the Megafactory in California, which has a two-year backlog of orders for Megapacks. The product has become a go-to for electric utilities looking to deploy energy storage on a large scale, either to stabilize their grid or to better utilize renewable energy like solar power.
Tesla CEO Elon Musk is currently in China, apparently to finalize the deal and meet with government officials. The company has indicated that it plans to export the Megapacks built in China around the world, allowing Tesla to have manufacturing hubs for the critical energy product on both sides of the world.
Source: Tesla
