Tesla has officially started producing its energy-storage batteries, known as Megapacks, at its new Megafactory in Shanghai. This marks a significant milestone in the U.S. company’s expansion within the Chinese mainland and highlights its commitment to investing in the world’s second-largest economy.
The Shanghai Megafactory is Tesla’s first facility of its kind outside the United States, dedicated solely to manufacturing Megapacks. These large-scale batteries are designed for utility-scale energy storage, helping to stabilize power grids and store renewable energy for later use.
According to Tesla, the factory is expected to reach mass production in the first quarter of 2025. With an initial annual production capacity of 10,000 units, equivalent to approximately 40 gigawatt-hours of energy storage, the facility is set to play a crucial role in achieving Tesla’s global energy storage goals. The company anticipates a 50 percent year-on-year increase in energy storage deployments in 2025.
At the launching ceremony, Mike Snyder, Tesla’s vice president of energy and charging, expressed enthusiasm about the rapid progress of the Shanghai Megafactory. “We’ve witnessed the incredible speed of Shanghai and Tesla once again. I’m excited to have this factory kick off an exciting year for Tesla,” he said. Snyder also conveyed confidence that the new Megafactory will become a cornerstone of Tesla’s global production network.
The Megafactory, located in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, covers an area of approximately 200,000 square meters. The total investment for the project is about 1.45 billion yuan (around $202 million), according to the local administration.
Tesla announced its plan to build the Megapack battery plant in Shanghai in April 2023. Construction began in May 2023, and the project was completed in just seven months. This rapid development surpasses the “Tesla speed” set by the Tesla Shanghai Gigafactory in 2019, which was known for its groundbreaking production and delivery within the same year.
The launch of the Shanghai Megafactory not only strengthens Tesla’s presence in the Chinese mainland but also underscores the growing importance of energy storage solutions in the global shift toward renewable energy. With this new facility, Tesla aims to meet the increasing demand for reliable energy storage and support the integration of sustainable energy sources worldwide.
