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Ride Radar > Blog > News > Tesla > Tesla equipping Shanghai Megafactory with ‘giant power bank’
Tesla

Tesla equipping Shanghai Megafactory with ‘giant power bank’

Last updated: June 4, 2025 8:45 am
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Tesla is making significant strides in sustainable energy solutions with the installation of a distributed photovoltaic power generation and energy storage system project at its Shanghai Megafactory. This project will encompass a 6-MW photovoltaic power generation system and an 8-MWh energy storage system, marking a significant step towards green energy practices.

The energy storage system at the Shanghai Megafactory will function as a massive power bank, storing green power and supplying it when needed. The project is being carried out by a subsidiary of Shanghai Lingang Economic Development Group, with a target completion date by the end of this year. This initiative is the first of its kind in Shanghai and will play a crucial role in enhancing the factory’s energy efficiency.

All energy storage units will utilize Tesla’s Megapack electrochemical energy storage system, which is produced on-site at the Shanghai Megafactory. The photovoltaic system will directly supply electricity to the Megafactory, with excess power being stored in the Megapack for future use. This innovative approach essentially transforms the Megafactory into a “giant power bank,” ensuring a continuous and reliable power supply.

The installation of this system will enable the factory to absorb 100 percent of the clean energy it generates, thus smoothing out electricity load fluctuations and serving as an emergency backup. Tesla commenced construction of the Shanghai Megafactory on May 23, 2024, marking a significant milestone as its first energy storage project outside the United States.

Situated in the Lingang area of Pudong, Shanghai, the Megafactory is also home to Tesla’s EV manufacturing facility in China. The Lingang Group, the first customer for the Megapack in China, signed an agreement with Tesla for the initial batch of orders during the groundbreaking ceremony last year.

See also  Tesla denies Cybertruck will go on sale in China in Jan after rumors resurface

Tesla’s energy storage product lineup includes the Powerwall, Powerpack, and Megapack, with the Shanghai Megafactory primarily focusing on the production of Megapacks for the global market. With an annual production capacity of 10,000 units and a storage capacity of nearly 40 GWh, the Megapack plays a crucial role in stabilizing the grid and preventing power outages.

The Megapack’s impressive 40 GWh capacity is capable of powering 50,000 households in Shanghai for an entire year, highlighting its significance in promoting sustainable energy practices. This installation signifies Tesla’s commitment to revolutionizing the energy sector and promoting a greener future for all.

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