Tesla’s milestone Shanghai ‘megafactory’ officially opens

Tesla’s milestone Shanghai ‘megafactory’ officially opens

Tesla’s milestone Shanghai ‘megafactory’ officially opens 1024 430 Batteries International

May 31, 2024: Tesla broke ground on its new ‘megafactory’ last Thursday in eastern Shanghai’s Lingang — it is the first time the carmaker-cum-utility storage developer has opened a facility of this kind outside the US megafactory in Lathrop, California.

Megafactories, sometimes termed by Tesla with ‘superfactories,’ are used to manufacture, in scale, ultra-large commercial electrochemical energy storage systems known as Megapacks. Tesla plans to open a second megafactory in Mexico in 2026.

Tesla already has had gigafactories located abroad — in Shanghai, China since 2019 and Berlin-Brandenburg, Germany since 2022. The term gigafactories was created by Tesla in 2013.

Following the ground-breaking ceremony, Lingang Group and Tesla signed a contract for China’s first batch of Megapack ultra-large commercial electrochemical energy storage systems. This marks a new chapter in Tesla’s business in China.

When the plant officially opens — production is to begin in the first quarter of 2025 — it is projected to have an annual capacity of 10,000 Megapack units. This translates into a storage scale of nearly 40GWh.

The new factory obtained a construction permit on May 13 and it took just one month for Tesla and Lingang to reach an agreement on the project, said Wu Xiaohua, deputy-secretary of the Party working committee during the groundbreaking ceremony.

The new factory covers an area of approximately 200,000m2 with a total investment of around 1.45 billion yuan ($200.2 million), and aims to export products to overseas markets, including the Asia-Pacific region, to support the global “green future,” Xinhua news agency reported.

Tesla’s senior vice president, Zhu Xiaotong — better known as Tom Zhu — said: “Tesla is committed to solving fundamental issues in transportation and energy with disruptive technology, forming a vertically integrated innovation ecosystem spanning electric vehicles, energy storage products, artificial intelligence, and robotics.

“Tesla’s energy storage business is a crucial component of our diversification strategy, leading the global energy storage market with advanced technology and innovative products. The commencement of the Shanghai energy storage superfactory will undoubtedly further cement Tesla’s leading position in the energy storage sector and promote the advancement of the global green energy industry.”

Tesla’s senior vice-president Mike Snyder said that Megapacks can meet the diversified energy demands from customers across the world, facilitating the world’s green energy development.

This follows from a statement by CEO, Elon Musk, last year introducing the “Master Plan 3” during an Investor Day event, live-streamed globally. He stated that achieving a sustainable energy economy requires meeting the following goals: 240TWh of energy storage, 30 TWh of renewable electricity, and $10 trillion of investment in manufacturing.