Summary
- Tesla has completed its Shanghai Megapack grid-scale battery factory after seven months of construction
- The factory is located near Tesla’s Shanghai Gigafactory in China
- Production at the new factory has begun with a target of 10,000 Megapack units annually
- The facility represents Tesla’s second Megapack production facility and the first outside of the U.S.
- The construction process was completed ahead of schedule, with a total investment of around 1.45 billion yuan
Article
Tesla has completed construction of its Megapack grid-scale battery factory in Shanghai, China after just seven months. The factory is the company’s second Megapack production facility, and its first outside of the U.S. Production is set to begin immediately, with the goal of delivering the first Megapack units in the first quarter of 2025. The Megafactory aims to produce 10,000 Megapack units annually, equivalent to 40 GWh, matching the output capacity of Tesla’s first Megapack facility in California.
Construction materials for the Shanghai Megafactory began arriving on-site in March, and official approval for construction was granted in early May. The location for the Megafactory was selected in April 2023, with a signing ceremony for the construction project taking place in December of that year. The facility is situated in the Lingang Economic Development Group complex, near Tesla’s Shanghai Gigafactory, and covers an area of around 200,000 square meters. The total investment in construction was approximately 1.45 billion yuan.
Tesla’s Megafactory in Lathrop, California has been ramping up production since it began operations in 2022. The facility also has a target volume production of 10,000 units per year, and recently celebrated reaching its first 10,000 Megapacks last month. The speed of construction for the Shanghai Megafactory suggests that production ramp-up may be even faster than the Lathrop site. It remains to be seen when either factory will be able to produce 10,000 Megapacks in a year.
Despite exceeding battery deployments for FY 2023, Tesla Energy has started trial production at its Shanghai Megafactory. The quick completion of the Megafactory construction indicates a potential for rapid production ramp-up. It is yet to be seen when both the Shanghai and Lathrop factories will be able to produce 10,000 Megapacks annually. Tesla’s focus on expanding Megapack production globally highlights the company’s commitment to sustainable energy solutions and grid-scale battery storage.
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