Tesla Plans to Construct a New Energy Storage Battery Plant in China
According to Chinese state media, Tesla is expanding its presence in China by building a new factory in Shanghai that will produce the Megapack battery for energy storage.
Groundbreaking is scheduled for the third quarter of this year, with production slated to begin in the second quarter of 2024. It is not clear how much Tesla will be investing in this new factory. At an initial capacity of 10,000 units per year, the Megapack will provide around 40 gigawatt hours of energy storage and will be sold globally.
Each unit can store enough energy to power approximately 3,600 homes for one hour, Tesla stated. Tesla has not yet commented on the matter. Despite growing geopolitical tensions and economic uncertainties in China, Tesla is planning to expand its presence in the country by building a new factory in Shanghai.
This move comes in addition to Tesla's existing car plant in Shanghai, which accounts for nearly half of the company's global car deliveries. China is Tesla's second-largest market after the U.S., representing nearly a quarter of its revenue in 2022. Despite the risks, Tesla appears to be doubling down on its investment in China.