Leading American electric automaker Tesla has finally kicked off its planned Megafactory project in Shanghai, China.
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:
| Items | Description |
| Renewable Smoothing | Balance the flow of renewables to the grid by storing and discharging energy |
| Demand Support | Discharge energy during peak demand to support distribution infrastructure |
| Infrastructure Investment | Postpone costly grid infrastructure upgrades by storing power at a single location |
| Voltage & Frequency Regulation | Stabilize voltage levels by absorbing reactive power and adjusting output |
| Market Participation | Provide energy support to the grid in response to system operator alerts |
| Microgrid | Build a localized grid that can disconnect from the main power grid |
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 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.
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.
