Tesla Megafactory in Shanghai begins production of Megapack batteries

U.S. carmaker Tesla on Tuesday launched the production of its energy-storage batteries, known as Megapacks, at its new Megafactory in east China's Shanghai, marking a milestone in Tesla's presence in the Chinese market. The project underscores the U.S. company's commitment to investing in the world's second-largest economy. The Megafactory is the first of its kind built by Tesla outside the United States and is dedicated to manufacturing Megapacks, Tesla's energy-storage batteries. Mass production at the Shanghai facility is expected to fully commence in the first quarter of 2025, Tesla said. With an initial annual production capacity of 10,000 units, or roughly 40 gigawatt-hours of energy storage, this Megafactory is set to significantly contribute to Tesla's global energy storage goals. The company anticipates a year-on-year increase of 50 percent in energy storage deployments in 2025. At the launching ceremony, Mike Snyder, Tesla's vice president of energy and charging, noted that Tesla's Shanghai energy storage Megafactory is scheduled to ramp up production this quarter, which will assist Tesla to expand into more markets. "We've witnessed the incredible speed of Shanghai and Tesla once again. I'm excited to have this factory kick off an exciting year for Tesla," Snyder added. He also expressed the confidence that the new Megafactory will become a cornerstone of Tesla's global production network. Covering an area of approximately 200,000 square meters, the new Shanghai plant represents a total investment of about 1.45 billion yuan , according to the administration of the Lin-gang Special Area of China Pilot Free Trade Zone, where it is located. Tesla's plan to open a Megapack battery plant in Shanghai was announced in April 2023. In May 2024, the construction kicked off. The project took just seven months to complete, setting a new record that surpasses the "Tesla speed" established by the Tesla Shanghai Gigafactory in 2019, which is known for its "groundbreaking production and delivery all in the same year."

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