SHANGAI - According to Xinhua, Chinese state news agency, Tesla, Inc. (NASDAQ:TSLA) has announced plans to construct a factory in Shanghai for the production of its Megapack, a high-capacity energy storage battery.
Tesla to construct large-scale battery factory in Shangai
Xinhua has reported that Tesla, under the ownership of Elon Musk, is set to commence construction of a factory in Shanghai for the manufacturing of its Megapack battery in Q3 of 2023.
The production of the Megapack is expected to begin in Q2 of 2024. This move is part of Tesla's plan to expand its operations in China, which is the world's largest electric vehicle market.
The new factory will have an initial annual production capacity of 10,000 Megapacks, which translates to approximately 40 gigawatt-hours of energy storage. These Megapacks will be sold globally.
The Megapack factory will be situated within the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone. The strategic location of the factory is expected to offer Tesla access to China's robust battery supply chain, which will enable the company to ramp up production and lower production costs.
The goal of this move is to meet the surging global demand for energy storage, which is gaining importance as the world shifts towards renewable energy sources.