Tesla, through its Chinese arm, will finally begin the construction of the long awaited Megafactory in Shanghai sometime in May 2024, local publication The Paper reported, citing internal sources.
Tesla Shanghai Megafactory Set to Break Ground Next Month
As per the report, Tesla China plans to break ground in its proposed Megafactory in Shanghai in May 2024. After that, mass production of Tesla Megapacks will follow in the first quarter of 2025.
The Megafactory is set to become Tesla’s first-ever energy storage production plant outside the United States.
Tesla set a target of cranking out up to 10,000 Megapacks with almost 40 GWh of energy storage in the Shanghai Megafactory, similar to the production capacity of its Lathrop Megafactory. The Megapack products will reportedly cater to the global market.
Brief Background
Tesla officially inked a deal with Lingang authorities in Shanghai on April 9 last year, which involves the proposed Megafactory in the area.
The Musk-led company aims to leverage the new facility to handle the production of its energy storage offering, Megapack.
In hindsight, Lingang Special Area Administration disclosed in April 2023 that Tesla’s initial schedule for the Megafactory’s development was in Q3 2023, while production was set for Q2 2024.
In that sense, the Shanghai Megafactory seems to be two quarters behind the company’s original plans.
What’s the Tesla Megapack?
The Tesla Megapack is an energy storage product that helps stabilize the electrical grid and prevent power outages. As per Tesla, each Megapack offers an energy storage capacity of more than 3.9 MWh.
It is apparently enough to power approximately 3,600 households for an hour on average. Here are the key details of the Tesla Megapack:
| 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’s energy storage unit has demonstrated significant expansion in recent years. In 2023, the company’s deployed energy storage capacity hit a total of 14.7 GWh. It represents an astounding year-on-year growth of 125%.
