American electric vehicle giant Tesla has just secured the necessary construction permit to pursue its proposed Megafactory project in Shanghai, China.
Tesla secures construction permit for Megafactory Shanghai
The Office of the Management Committee finally gave Tesla the green light to start constructing its planned Megafactory in Lingang New Area, China Pilot Free Trade Zone, according to local media Xinhua.
The upcoming facility, which will rise Nanhui New Town, Pudong New Area, is on track to become Tesla’s first-ever energy storage mega factory outside its home turf.
Tesla is expected to kick off mass production at the new facility in Q1 2025, per the report.
Production capacity
Tesla’s upcoming Megafactory Shanghai will have an annual production capacity of 10,000 Megapack units, which equates to approximately 40 GWh of energy storage capacity.
The facility will cover a total area of 204,359.92 square meters, per the report.
For context, Megapack is a high-capacity commercial battery suitable for energy storage and grid support. It substantially aids clients in stabilizing electrical grids and preventing outages.
Timeline
Tesla formally announced the Megafactory Shanghai project in April 2023 under the Master Plan 3. It is expected to live up to the Giga Shanghai’s tremendous success since its construction started in January 2019.
Tesla initiated the preliminary preparations for the local Megafactory in March. Now, the Musk-led company is expected to start construction this month.
Administration Committee of Lingang New Area’s High-Tech Department Director Lu Yu disclosed Tesla’s plans to complete pilot production this year and start mass production in the first quarter of 2025.
Tesla’s upcoming Megafactory in China will undoubtedly bring its energy storage deployments to new heights in the coming years. In Q1 2024, it reported a record-breaking energy storage deployment capacity of 4.1 GWh, propelled by Megapack deliveries.
