Tesla acquires land for Megapack factory construction in Shanghai

Shanghai (Gasgoo)- On December 22, Tesla finalized the land acquisition agreement in Shanghai, officially commencing the Tesla Megapack project in the Chinese megacity. As Tesla's first energy storage megafactory project outside the United States, this facility is set to be operational by 2024.

In the initial phase, Tesla's Megapack factory in Shanghai is designed with an annual production capacity of 10,000-unit commercial energy storage batteries, with a total energy storage capacity of nearly 40 gigawatt-hours. Each commercial energy storage battery can store over 3 megawatt-hours of energy, suitable for various applications such as renewable energy systems and peak demand management.

"China has continuously elevated its level of openness in recent years, and Tesla has not only witnessed this but also benefited from it," stated Tesla's Global Vice President, Ms. Grace Tao, “China's opening-up policies, advanced development concepts, and favorable business environment have created immense opportunities, making the Chinese market a "must-have" option for Tesla's growth.” She added.

Ms. Tao emphasized that the Tesla Megapack factory is not only a crucial optimization of the company's global production layout, but will also contribute to the development of Shanghai's energy storage industry and the transformation towards green and low-carbon initiatives.

In January 2019, Tesla broke ground on the Shanghai Gigafactory, achieving the remarkable speed by completing construction, starting production, and beginning product market launch within the same year.

"With Tesla's efficient production and lean manufacturing capabilities, coupled with the favorable business environment in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, the newly constructed Megapack factory project is expected to start construction in the first quarter of 2024 and commence production in the fourth quarter next year, setting a new benchmark for 'Tesla Speed,'" remarked Grace Tao.

Since 2019, Tesla has continuously increased its investments in the Lin-gang Special Area. This includes expanding the production capacity of the Shanghai Gigafactory and constructing facilities such as a Supercharger factory and the Shanghai R&D and Innovation Center.

In the first 11 months of 2023, the Tesla Shanghai Gigafactory delivered over 850,000 vehicles, exhibiting a 30% year-on-year jump.