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EV-a2z > News > Tesla officially launches Megafactory project in China
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Tesla officially launches Megafactory project in China

EV-a2zm
Last updated: 2023/12/23 at 3:22 PM
EV-a2zm Published December 23, 2023 4 Min Read
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Powering Progress: The Gigafactory, heartbeat of the electric vehicle revolution
Powering Progress: The Gigafactory, heartbeat of the electric vehicle revolution
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Leading American electric automaker Tesla has finally kicked off its planned Megafactory project in Shanghai, China.

Contents
What is Megapack?Tesla completes land acquisition for the projectTimeline

🔥🇨🇳 Tesla has officially started its Megafactory project in Shanghai, China:
• a deal was signed with local authorities
• production might begin in early 2025
• the factory aims to manufacture up to 10,000 Megapacks, providing nearly 40GWh of energy storage
• initially, it… pic.twitter.com/n7bq9lXO2G

— Tesla Newswire (@TeslaNewswire) December 22, 2023

It would mark Tesla’s second Megafactory after the facility in Lathrop, California. Originally, Tesla was only producing the Megapacks in a manufacturing area at Gigafactory Nevada. The Lathrop Megafactory is reportedly still ramping up production to its 40 GWh maximum capacity. However, Tesla already disclosed plans earlier this year to replicate the Megafactory in Shanghai with a deal with the city’s Lingang authorities.

Now, local reports reveal that the Musk-led company finally acquired the land on Friday. 

“A signing ceremony for land acquisition of the project was held on Friday morning in Shanghai, marking the official opening of what the company said was a “milestone project.”

Xinhua 

What is Megapack?

Tesla’s Megapack is a potent battery that offers energy storage and support to ensure the electrical grid’s reliability and safety. According to Tesla, each Megapack has a storage capacity of more than 3.9 MWh of energy.

Remarkably, that storage capacity is already sufficient to provide power to about 3,600 households for an hour on average.

Tesla Megapacks are ideal for utilities and large-scale commercial projects, with the company offering clients support in system design. Presented below are more information about the Tesla Megapacks, as displayed in the official website:

ItemsDescription
Renewable SmoothingBalance the flow of renewables to the grid by storing and discharging energy
Demand SupportDischarge energy during peak demand to support distribution infrastructure
Infrastructure InvestmentPostpone costly grid infrastructure upgrades by storing power at a single location
Voltage & Frequency RegulationStabilize voltage levels by absorbing reactive power and adjusting output
Market ParticipationProvide energy support to the grid in response to system operator alerts
MicrogridBuild a localized grid that can disconnect from the main power grid

📣 JUST IN: $TSLA Tesla to Build Megapack Battery Plant in Shanghai, Strengthening China Presence $QS $NIO $XPEV $LI

Key Details:

📍 Tesla acquires land in Shanghai for a new factory to build Megapack large-scale batteries.

📍 The Shanghai Megafactory aims to produce 10,000… pic.twitter.com/nSJsWsFpfJ

— Hardik Shah (@AIStockSavvy) December 22, 2023

Tesla completes land acquisition for the project

Tesla obtained the use rights to a 19.7-hectare (48.7 acres) plot for an astounding amount of 222.42 million yuan ($31.13 million), Reuters reports, citing a separate government statement.

Tesla Shanghai Megafactory signing ceremony$TSLA 🇨🇳 pic.twitter.com/2hmdPH8TMT

— Updates (@sirfupdate_) December 22, 2023

Tesla will utilize the acquired land in Shanghai to develop its proposed megapack battery manufacturing plant.

Notably, the land is just near Tesla’s existing Gigafactory in Shanghai, which manufactures Model 3 and Y units.

“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.”

Tao Lin, vice president of Tesla (via Xinhua)

Timeline

Tesla reportedly aims to commence the Megafactory’s operation in the fourth quarter of 2024.

Before that, Tesla expects to start construction at the site in the first quarter of 2024.

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

In hindsight, Tesla announced in April that the Megafactory’s development would commence in Q3 2023, while production will be in Q2 2024.

The Megafactory Shanghai will reportedly have an annual production capacity of 10,000 Megapacks, similar to the capacity of the Lathrop Megafactory. It also aligns with Giga Shanghai’s production prowess of 1.1 million EVs per year.

All that said, the imminent launch of the new Megafactory in Shanghai will significantly aid Tesla in cutting logistical costs by exporting its Megapacks from China to its projects in the Asia-Pacific region rather than the US.

Interested customers can order a Tesla Megapack here.

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TAGGED: China, Electric Vehicle, EV, Tesla, Tesla Megapack
EV-a2zm December 23, 2023 December 23, 2023
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