Tesla has commenced trial production at its Shanghai battery factory, a large-scale facility dedicated to the manufacturing of Megapack energy storage batteries. The factory is poised to begin mass production in the first quarter of 2025.
Strategically located near Tesla's existing vehicle manufacturing plant in Shanghai, this facility represents Tesla's inaugural battery manufacturing plant outside the United States. Encompassing 200,000 square meters, the factory reflects an investment of approximately 1.45 billion yuan (roughly $202 million USD), as reported by local authorities.
Tesla China proudly announced the completion of factory construction within a mere seven months, establishing a new benchmark for Tesla's construction speed within China. In comparison, Tesla's initial Shanghai car factory, finalized in 2019, required a year for completion.
Tesla's fixed energy storage product portfolio encompasses the Powerwall, Powerpack, and Megapack. The new factory will primarily focus on producing Megapacks for both the domestic Chinese market and for export to global destinations. Reports indicate that Megapacks will be shipped to solar energy-driven markets worldwide, notably Australia.
The factory is designed to achieve an annual production capacity of 10,000 Megapacks, translating to approximately 40 gigawatt-hours of energy storage. According to Tesla, each Megapack possesses the capacity to store over 3 megawatt-hours of electricity—sufficient to power an estimated 3,600 homes for one hour. These Megapacks will exclusively utilize lithium iron phosphate (LFP) batteries.
This development marks Tesla's second significant facility in Shanghai, following the establishment of its vehicle manufacturing plant in 2019. While CATL has historically served as Tesla's primary supplier for Megapack batteries in China, the company has actively pursued a strategy of supply chain diversification. In June 2024, Tesla forged a partnership with FinDreams, the battery manufacturing division of BYD, and intends to commence sourcing Megapack cells from them in the first quarter of 2025.
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