Tesla has officially inaugurated its new mega factory project in Shanghai, capable of producing 10,000 Megapacks annually, the company announced on Friday.
The project’s initiation was marked by a land acquisition signing ceremony on Friday morning in Shanghai, heralding what Tesla describes as a “milestone project.”
The Megapack, a powerful battery designed for energy storage and grid stabilization, is a key component in Tesla’s strategy to prevent power outages. According to Tesla’s website, these batteries are crucial in supporting energy infrastructure.
Located in the Lingang area of the China (Shanghai) Pilot Free Trade Zone, the mega factory is set to commence construction in the first quarter of 2024 and begin production in the fourth quarter of the same year. The facility is expected to produce 10,000 Megapack units annually, equating to nearly 40 GWh of energy storage. These products are intended for global distribution.
In an exclusive interview with Xinhua, Tao Lin, Vice President of Tesla, emphasized the significance of the mega factory. “The mega factory is an important optimization of the company’s global production layout,” Tao stated.
She further highlighted the benefits of China’s progressive opening-up policies and favorable business environment, which have created substantial opportunities for enterprises like Tesla. “China’s opening up policy, advanced development concepts, and good business environment have created huge opportunities for enterprises, and the Chinese market is a ‘must’ for Tesla’s development,” Tao added.
Tesla’s Shanghai Gigafactory, which broke ground in January 2019, was the first to take advantage of a new policy allowing foreign carmakers to establish wholly owned subsidiaries in China. The plant demonstrated remarkable efficiency, delivering its first batch of made-in-China vehicles within a year.
Over the years, Tesla has significantly increased its investment in Lingang, expanding the Shanghai Gigafactory’s production capacity and adding facilities, including a supercharger manufacturing factory. From January to November this year, the Shanghai Gigafactory delivered over 850,000 vehicles, marking a 30% increase year-on-year and becoming Tesla’s main global export center.
Tao expressed confidence in the new project, citing Tesla’s efficient production capabilities and Lingang’s high-quality business environment. “With Tesla’s efficient production and manufacturing capabilities, coupled with the high-quality business environment in Lingang, the mega factory project is expected to refresh the ‘Tesla speed,'” she concluded.