In order to produce energy storage items for the market, Tesla has announced a new agreement to erect a Megafactory in Shanghai, China.
Tesla opened its first “Megafactory” in California last year.
Megapacks, a sizable battery system utilised in extensive power storage initiatives for electric utilities all over the world, are produced exclusively at this facility.
It is increasing Gigafactory Nevada’s capacity and production by up to 40 GWh annually, which is greater than all stationary power storage put together worldwide.
Despite the increase in capacity, Tesla still has an order backlog for Megapack that dates back about two years. This is because the product has become the standard for electric utilities looking to implement energy storage on a massive scale to either stabilise their grid or better utilise renewable energy sources, such as solar power.
In light of the recent announcement of an extra Megafactory in China, Tesla is now expanding its capacity even further:
Our next Megafactory will be in Shanghai 🇨🇳—capable of producing 10k Megapacks per year pic.twitter.com/KlVGq5gYOg
— Tesla (@Tesla) April 9, 2023
The proposal seems to be an exact replica of the California Megafactory, which can produce 10,000 Megapacks annually or 40 GWh.
Tesla also wants to build the factory at a fast rate, as it did in Lathrop, with construction planned to start in the upcoming quarter and manufacturing expected to start in Q2 2024.
The business has stated that it intends to distribute the Megapacks made in China all over the world. Tesla will be able to establish production plants for the essential energy product from both ends of the globe thanks to this.
Elon Musk, the CEO of Tesla, is reportedly in China over weekend to finalise the agreement and meeting with government representatives. According to speculations, Tesla is also trying to negotiate a deal to put its Complete Self-Driving Beta on the market.
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