Tesla's new Megafactory in Shanghai, dedicated to manufacturing its grid-connectable stationary batteries known as Megapacks, launched production on Tuesday, marking a significant expansion of the U.S.-based clean energy company's presence in China.
With an initial annual production capacity of 10,000 units, or roughly 40 gigawatt-hours of energy storage, the Megafactory is set to significantly contribute to Tesla's goal of reshaping global energy storage for power grids. The company anticipates a year-on-year increase of 50 percent in energy storage deployments in 2025.
Covering an area of approximately 200,000 square meters, the new Shanghai plant represents a total investment of about 1.45 billion yuan (around 202 million U.S. dollars), according to the administrative body that oversees the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, where this Tesla facility is located.
Notably, mass production at the factory commenced just eight months after construction began, serving as a new example of Tesla's speedy expansion in China.
The Megafactory is also the first of its kind built by Tesla outside the United States.
According to the company's 2024 financial report, the annual installed capacity of its energy-storage batteries globally reached 31.4 gigawatt-hours, up 113 percent year on year.
The installed capacity for Tesla-deployed energy storage systems is expected to grow at least 50 percent year on year as the Megapacks produced in Shanghai are put into use.
Tesla launches energy-storage battery production at Shanghai Megafactory
