Tesla’s energy storage factory in Shanghai is on track to be completed by the end of this year, with production scheduled to begin in the first quarter of 2025. The Megafactory, located in Shanghai, is nearing the final stages of construction, signaling the company’s foray into the energy storage market.
According to a report by the Shanghai Observer, the construction of the Megafactory is expected to be completed within seven months, a faster timeline compared to the construction of Tesla’s Giga Shanghai vehicle assembly plant. The Giga Shanghai plant, which started construction in January 2019, became operational by the end of the same year, marking a significant milestone as China’s first wholly foreign-owned vehicle manufacturing project.
Tesla officially kicked off the construction of its Shanghai Megafactory on May 23. This marks the company’s first energy storage project outside the US. The Shanghai Lingang Economic Development Group was the first customer in China to sign an order for Tesla’s Megapack product at the groundbreaking ceremony.
The Megafactory will focus on producing Megapack, an ultra-large commercial energy storage battery designed for the global market. Tesla’s energy storage product lineup includes Powerwall, Powerpack, and Megapack, with the Shanghai Megafactory primarily focused on Megapack production.
Tesla has set ambitious production targets for the Megafactory, aiming to produce up to 10,000 Megapack units per year with a total energy storage capacity of nearly 40 GWh. The Megapack is a high-capacity battery that can store and supply energy, aiding in grid stabilization and preventing power outages. The 40 GWh of energy storage capacity is enough to power 50,000 households in Shanghai for a year.
Each Megapack unit can store over 3 MWh of energy, sufficient to power 3,600 homes for an hour. Shanghai has been a strategic city for Tesla’s growth in China, boasting the highest number of Tesla Supercharger stations in the country. Currently, Tesla has erected 204 Supercharger stations in Shanghai, providing a total of 1,540 Superchargers for EV owners in the region.
In a bid to bolster its supply chain, Tesla has partnered with BYD’s FinDreams unit to supply battery cells for the Shanghai Megafactory. This collaboration aims to enhance the production capacity and efficiency of Tesla’s energy storage products in the Chinese market.
As Tesla’s Shanghai Megafactory nears completion, the company is poised to make a significant impact on the energy storage industry, leveraging its expertise in electric vehicles to deliver innovative and sustainable solutions for grid management and energy storage needs.
