Tesla announced plans to build a new Megafactory in Shanghai on Sunday, confirming previous reports of energy storage hiring for a new factory.
The new facility is set to produce 10,000 Megapack units per year, boosting energy storage and green initiatives worldwide, reports state-affiliated Chinese media, Xinhua.
The groundbreaking for the new factory is slated for the third quarter of this year, with production anticipated to commence in Q2 of 2024. The announcement was made during a signing event held in Shanghai for the project.
The Tesla Asia Twitter account said later, “We set off on a new journey towards Master Plan 3. Meet Megafactory in Shanghai, China⚡️ @elonmusk @ShLetsMeet @Tesla @Tesla_Megapack,” while sharing a picture of the signing ceremony. Tesla’s Tom Zhu, the newly-minted senior vice president of automotive, can be seen standing in the background.
We set off on a new journey towards Master Plan 3.
Meet Megafactory in Shanghai, China⚡️@elonmusk @ShLetsMeet @Tesla @Tesla_Megapack pic.twitter.com/X7T8iaGzM1— Tesla Asia (@Tesla_Asia) April 9, 2023
Once operational, the factory will initially manufacture 10,000 Megapack units each year, equivalent to approximately 40 GWh of energy storage. These products will be available for sale on a global scale. The facility will be situated in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone.
The establishment of the new factory is projected to generate an industrial cluster valued at over 100 billion yuan ($14.6 billion), according to Lu Yu, an official with the Lin-gang Special Area Administration.
$TSLA @elonmusk
* Can We Think Of The exponential Growth Of Tesla Megapack?
🗣️ Elon : energy storage business will grow faster than its electric vehicle business.< Tesla, Storage deployed (MWh) >
2017 : 358
2018 : 1,041
2019 : 1,651
2020 : 3,022
2021 : 3,992
2022 : 6,541… pic.twitter.com/lHe7aa4as9— Tsla Chan (@Tslachan) April 9, 2023
Zhuang Mudi, Deputy Secretary-General of the Shanghai municipal government, highlighted that the project would contribute significantly to the growth of the energy-storage sector and support Shanghai’s transition towards green and low-carbon solutions.
Tesla’s first foray into the Chinese market began in January 2019, with the groundbreaking of its Shanghai Gigafactory. This venture marked the first occasion a foreign automaker took advantage of China’s new policy permitting wholly-owned subsidiaries in the country. In 2022, the Shanghai facility delivered 710,000 vehicles, a 48% increase from the previous year, and became Tesla’s main vehicle export hub.
Since 2019, Tesla has steadily increased its investment in the Lingang area, expanding the Shanghai factory’s production capacity and constructing additional facilities, such as a supercharger manufacturing plant. The strong business environment in Shanghai and the Lingang Special Area has allowed the Tesla Shanghai Gigafactory to achieve an industrial chain localization rate of over 95%, as noted by Tesla Vice President Tao Lin, who also attended the ceremony.
