Tesla to build new battery plant in China


Tesla says it plans to start building its new Shanghai factory in the third quarter of 2023, with operations to commence in the second quarter of 2024. It says that the factory will produce Megapack, Tesla's large commercial energy storage batteries.

Tesla's Megapack batters are known for their ability to store more than 3 MWh of electricity per unit, for high-density, utility-scale energy storage projects. The batteries can be integrated and installed with battery packs, inverters, and temperature control systems to stabilize the grid. The battery packs are designed to match with dedicated inverters. Megapack batteries can also be updated in real time via over-the-air (OTA) software to continuously optimize them.

Tesla says the Megapack factory will be its first major storage factory project outside of the United States. Zhuang Mudi, the deputy secretary of the Shanghai municipal government, said that the Tesla Megapack factory project will play a crucial role in promoting the development of Shanghai's energy storage industry.

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In January 2019, Tesla started building its Shanghai gigafactory and completed it within a year. The Shanghai gigafactory supplied more than 710,000 electric vehicles in 2022. Since 2019, Tesla has continued to invest in Shanghai, partly by increasing the production capacity of the Shanghai gigafactory.

Reuters has reported that CEO Elon Musk plans to visit China in April.

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