Tesla will build a new energy storage super factory in Shanghai in the second half of this year

In a recent announcement, Tesla confirmed plans to construct a new energy storage megafactory in Shanghai during the second half of this year, with the intention to produce Megapack battery products locally within China.

The forthcoming energy storage megafactory will be situated in the Lingang area of Shanghai. On April 9, the signing ceremony took place at the Lingang New Area Administration Committee in the presence of Zhu Xiaotong, recently promoted to Senior Vice President of Tesla’s automotive business, Wang Hao, Tesla China General Manager, and Tao Lin, Vice President of Tesla Global External Relations.

“Tesla Model X” by Don McCullough is licensed under CC BY 2.0

This facility will become Tesla’s second energy storage megafactory, boasting an estimated annual production capacity of 10,000 Megapack batteries, equating to a total output of 40 gigawatt-hours (GWh). Tesla’s first energy storage megafactory is located in California and currently stands as the company’s sole operational megafactory of its kind.

At present, Tesla’s Megapack batteries are manufactured using lithium iron phosphate batteries developed by CATL, primarily serving energy storage and discharge requirements. They can function as emergency power systems in households, and when necessary, contribute to maintaining the stability of the public grid.

Each Megapack battery module can store over 3 million watt-hours (Wh) of electricity, approximately meeting the electricity demands of 3,600 households for one hour.