Tesla to Build Megafactory in Shanghai for Megapack Battery Production

Tesla has announced that it is building a new Megafactory in Shanghai, China, which will be dedicated to manufacturing the company’s energy storage product, Megapack. The Megapack is an advanced battery system designed for large-scale energy projects, capable of storing over 3 MWh of energy, enough to power about 3,600 homes for an hour. Each unit is infinitely scalable and essentially acts like a massive battery generator that can be used to store energy for different scenarios.[0] By using solar panels in combination with this system, individuals can achieve grid independence. The batteries are charged during daylight hours and discharged at night when solar energy is unavailable.[0] Furthermore, the Megapacks have the capability to be refilled from the electrical grid during nighttime hours, when energy expenses are likely to be reduced, and subsequently fuel all daytime operations.[0] Initially, the new factory will manufacture 10,000 Megapacks per annum, equivalent to roughly 40 GWh of energy storage, and the merchandise will be available for purchase globally.[1]

Tesla’s first factory in Shanghai, which opened in 2019, produced almost 90,000 units in February, according to the China Passenger Car Association, and can turn out about 1.1 million units annually. Tesla’s Gigafactory Shanghai, which produces the Model 3 sedan and Model Y crossover, is also located in the Lingang area of Shanghai’s Pudong new district.[2] Since its establishment in 2019, the plant has emerged as Tesla’s most significant worldwide hub for electric vehicle production, in terms of quantity. Moreover, the facility operates as the main center for exporting vehicles for the company.[3] Tesla’s primary export hub is now Gigafactory Shanghai, surpassing the production capacity of the Fremont Factory, as of April 10, 2023. The factory, which has the capacity to produce more than 750,000 vehicles every year, is currently the biggest production facility for electric vehicles globally.[4]

The decision to build the new mega plant in Shanghai is a positive signal, demonstrating foreign enterprises’ confidence in the Chinese economy as it bounces back from COVID and presses ahead to maintain steady and quality growth. At a signing ceremony for the project in Shanghai, it was announced that the company, led by Elon Musk who is reportedly visiting China this weekend, will be undertaking the venture.[5] The contract signing ceremony was attended by Tom Zhu, Tesla’s senior vice president of automotive, as well as Shanghai government officials, including vice mayor Wu Qing. The contract was signed by Tesla Vice President Tao Lin.[5] Initially, the new factory will manufacture 10,000 Megapacks per annum, equivalent to roughly 40 GWh of energy storage, and the merchandise will be available for purchase globally.[1]

The purpose of the Megapack is to serve as a colossal battery that aids in stabilizing energy grids. The company claims that each Megapack can store sufficient energy to supply power to around 3,600 households for an hour. Initially, the new factory will manufacture 10,000 Megapacks per annum, equivalent to roughly 40 GWh of energy storage, and the merchandise will be available for purchase globally.[1] The Megapacks have also been used by national or state electricity companies to fill the void left by decommissioning coal-powered stations, like in Hawaii, where a 565-MWh battery array charged by a 156-MW solar farm replaced coal power after 30 years.[0]

By choosing to construct their latest mega facility in Shanghai, Tesla has sent a positive message about their trust in the Chinese economy, which is steadily and confidently recovering from the impacts of COVID-19 while striving to sustain its growth with excellence. The move signifies Tesla is ready to take Megapack production out of its home country.[6] China is the initial international destination for the company, where it has achieved triumph as an electric vehicle manufacturer.[6] The company has expressed its intention to globally export the Megapacks manufactured in China.[3] Having production hubs for the crucial energy product on either side of the globe will be made possible by this.[7]

0. “Tesla Will Build A New Megafactory In China” InsideEVs , 9 Apr. 2023, https://insideevs.com/news/661472/tesla-megafactory-china-agreement/

1. “Update: Tesla to build new mega factory in Shanghai” Xinhua, 9 Apr. 2023, https://english.news.cn/20230409/c7e4c044823246a1ad204cd02dc496d3/c.html

2. “Tesla inks deal to build battery production plant in Shanghai” ZDNet, 10 Apr. 2023, https://www.zdnet.com/article/tesla-inks-deal-to-build-battery-production-plant-in-shanghai/

3. “Tesla announces new Megafactory in Shanghai that can produce 10K Megapacks per year” TESLARATI, 9 Apr. 2023, https://www.teslarati.com/tesla-new-megafactory-shanghai-10k-megapacks-per-year-confirmed/

4. “Teslas Gigafactory Shanghai Becomes Primary Export Hub Plans to Increase Production Capacity” Best Stocks, 10 Apr. 2023, https://beststocks.com/teslas-gigafactory-shanghai-becomes-primary-e/

5. “Musk, Tesla launch new battery plant project in China” Automotive News, 10 Apr. 2023, https://www.autonews.com/china/tesla-plans-new-shanghai-plant-build-megapack-batteries

6. “Tesla building Shanghai Megafactory for Megapack batteries” Drive Tesla Canada, 8 Apr. 2023, https://driveteslacanada.ca/news/tesla-building-shanghai-megafactory-for-megapack-batteries/

7. “Tesla announces a new Megafactory coming to China” Electrek, 9 Apr. 2023, https://electrek.co/2023/04/09/tesla-announces-megafactory-china/