Tesla held a ceremony on February 11 to mark the launch of production at its Megapack energy storage plant in Shanghai’s Lingang New Area, meaning Tesla's China operation has entered a new phase. The energy storage Megafactory is the first of its kind built by Tesla outside the U.S. and the company's second plant in Shanghai. Mike Snyder, Vice President of Energy and Charging at Tesla, said at the ceremony that Tesla's Shanghai energy storage Megafactory is scheduled to ramp up production this quarter, which will assist Tesla to expand into more markets. Construction of the energy storage Megafactory began in May 2024. The project took just 7 months to complete, setting a new record that surpasses the “Tesla speed” established by the Tesla Shanghai Gigafactory in 2019, which is known for its “groundbreaking, production, and delivery all in the same year.”
The energy storage factory covers an area of approximately 200,000 square meters, which is equivalent to the size of 30 standard soccer fields. It initially plans to produce 10,000 Megapack units a year, with a storage capacity of nearly 40 Gwh. It is expected that by 2025, Tesla's energy storage installation capacity will achieve at least 50% year-on-year growth, the company said, as reported by the Global Times.
The China Daily adds that the Megapack, an advanced battery system designed for large-scale energy projects, can store more than 3,900 kilowatt-hours of electricity in a single unit, enough capacity to power a Tesla Model 3 rear-wheel drive version for 39,000 kilometers.
The new energy storage project involved a total investment of CNY1.45 billion. According to Chen Haisheng, Chairman of the China Energy Storage Alliance, the targeted output of new-type energy storage, such as electrochemical energy storage and hydrogen storage, will top over CNY3 trillion by the end of 2025. The cumulative installed capacity of new energy storage is estimated to reach 100 million kilowatts by the end of this year. New-type energy storage has become a new economic driver in many places in China, as demonstrated by local governments’ industrial planning not only for this year but also for 2027 and even 2030, said Chen.
