Tesla has initiated the construction of a factory in Shanghai to produce its Megapack energy storage batteries, as reported by Chinese state media on Thursday cited by the Associated Press. The $200 million facility, located in Shanghai's Lingang pilot free trade zone, represents Tesla's first battery plant outside the United States. Having established an electric vehicle (EV) plant in Shanghai in 2019, Tesla has been a significant player in China's burgeoning EV market, ranking second only to Chinese auto giant BYD. The state-run Xinhua News Agency commended Tesla's investment in China, emphasising its contribution to defying the discourse of 'decoupling' and 'de-risking' from the country. The factory is scheduled to commence mass production in early 2025, with an initial capacity of 10,000 Megapack units annually. Each Megapack, capable of storing over 3.9 megawatt hours of energy, serves as a crucial solution for utility companies and commercial facilities. With the rise of solar and wind energy, energy storage units like the Megapack have become indispensable, ensuring power availability when renewable sources are inactive. Given China's dominance in wind and solar capacity installation, it emerges as a significant market for energy storage solutions.
