Tesla Builds A Megafactory in Shanghai

On April 9th, the signing ceremony for Tesla’s Megafactory project was held in Shanghai. The factory will be built in the Lingang New Area of the Shanghai Free Trade Zone.

The Management Committee of Shanghai Lingang New Area and Tesla jointly held the signing ceremony for the project. Tom Zhu, who was officially promoted to Senior Vice President of Tesla’s automotive business this month, as well as Wang Hao, General Manager of Tesla China, and Tao Lin, Vice President of Global External Relations at Tesla attended.

It is understood that Tesla’s Megafactory will plan to produce Megapack, a megasized commercial energy storage battery. The initial production plan aims to manufacture up to 10,000 units of Megapacks per year with energy storage capacity of nearly 40GWh. The product range will cover the global market. This project is scheduled to start construction in the third quarter

It is worth noting that the upcoming Megafactory will be Tesla’s second Megafactory globally. The first and currently only operational Megafactory is located in Lathrop, CA, on the outskirts of Stockton, United States.

The annual production capacity of this Megafactory is expected to be 40GWh, which is equivalent to ten thousand Megapacks. According to Tesla’s official website, the Megapack is a large battery that can store and supply energy, helping to stabilize the power grid and prevent blackouts, bringing improved effects on sustainable energy infrastructure. Tesla claims that each Megapack unit can store more than 3 MWh of energy, meeting the electricity needs of 3,600 households for one hour.

SEE ALSO: Tesla Names Tom Zhu as Senior Vice President for Automotive Operations

Megapack uses lithium iron phosphate batteries developed by CATL. In 2020, Tesla Model 3 adopted CATL’s lithium iron phosphate battery. In 2021, Tesla continued to use CATL batteries in Model Y. Prior to this, CATL had also signed a cooperation agreement with the Shanghai government to jointly promote the construction of an intelligent factory in the Lingang New Area.

This signing is a move by Tesla to improve its global production layout and implement measures to accelerate the world’s transition towards sustainable energy. It will promote the development of Shanghai’s new energy storage industry and green low-carbon transformation, while also demonstrating Shanghai’s commitment to attracting and utilizing foreign investment, continuously creating a market-oriented, rule-of-law-based, and international business environment.