In Shanghai, Tesla unveils the Megapack initiative

According to a statement released today, Tesla has formally opened its new Megafactory project in Shanghai, which will produce 10,000 Megapacks annually.

The company referred to the start of the project as a “milestone project” and held a signing ceremony for the project’s land acquisition on Friday morning in Shanghai.

The Megapack is a potent battery that helps maintain grid stability and avert power outages by storing and supplying energy.

On April 9, Tesla and the authorities of Lingang, Shanghai, inked an agreement for the construction of a new Megafactory there, specifically for the manufacturing of the energy-storage product Megapack.

The Megafactory will be the company’s first facility dedicated to producing energy storage systems outside of the US. Initially, it is intended to produce up to 10,000 commercial energy storage batteries annually, delivering approximately 40 GWh of energy storage. These products will be sold on the international market.

According to an announcement made in April by the Lingang Special Area Administration, construction of the plant was planned to start in the third quarter of 2024, with production starting in the second quarter.

According to today’s update, there has been a small delay in the start of construction.

In addition to the factory, Tesla’s Shanghai Gigafactory, China’s largest producer of electric vehicles (EVs), is situated in the Lingang area. The EV factory is currently Tesla’s largest production facility worldwide. It started operating in late 2019.

The primary business sectors for Tesla are electric vehicles (EVs) and renewable energy, which is further subdivided into solar and energy storage devices, which are presently offered as the Powerwall, Powerpack, and Megapack.

According to Tesla’s website, each Megapack unit has the capacity to store more than 3 MWh of energy, which is equivalent to 3,600 households’ worth of electricity for an hour.

Tesla’s energy storage battery products will be sold in China, according to a report published on December 6 by the local media outlet LatePost.

The energy storage products that are slated for sale in China are anticipated to assist Tesla in diversifying its revenue streams. According to the report, the company, which is presently concentrating on the US market, generated $1.56 billion in revenue in the third quarter, or 7% of total revenue.

Initially sourcing batteries from CATL, Tesla’s Megafactory in Shanghai may eventually begin producing its own batteries, according to a report by LatePost that referenced industry insiders.