Elon Musk’s China Bet: Tesla’s Shanghai Megapack Factory Starts Production
Tesla’s Shanghai mega-factory in the Ling-gang Special Area started its operations with an opening ceremony, according to Tesla, which is owned by US billionaire and advisor to the US government Elon Musk. It marks the significant expansion of the company’s presence in China.
Megafactory is set to make a substantial impact on Tesla’s worldwide energy storage ambitions with an initial yearly production capacity of 10,000 units, equating to roughly 40 gigawatt-hours of energy storage. In 2025, the company projects a 50 percent increase in energy storage deployments from the last year.
Tesla’s Megapack Background:
The Tesla Megapack is a large-scale rechargeable lithium-ion battery stationary energy storage product, intended for use at battery storage power stations, manufactured by Tesla Energy, the energy subsidiary of Tesla, Inc.
Launched in 2019, a Megapack can store up to 3.9 megawatt-hours (MWh) of electricity. Each Megapack is a container of similar size to an intermodal container. They are designed to be deployed by electric utilities. The energy stored can be used as required, for example during periods of peak electricity demand or when grid power is disrupted. Tesla Energy also offers the Powerwall, a smaller energy storage device intended for home use.
The new facility represents a total investment of around 1.45 billion yuan (approximately 202 million U.S. dollars), Spanning an area of approximately 200,000 square meters. The facts and figures are reported by the administration of the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, where this Tesla factory is situated. Mass production began at the plant just eight months after construction officially started. It represents ‘Tesla Speed’ in China, with the Shanghai Gigafactory. Tesla’s inaugural plant in the eastern financial hub of the country, being constructed and inaugurated within a year in 2019.
“We have once again witnessed the remarkable pace of Shanghai and Tesla. I am thrilled to see this factory usher in an exciting year for Tesla,” stated Mike Snyder, Tesla’s vice president, during the launch ceremony on Tuesday, showing optimism that the new facility will become a vital part of Tesla’s global production network.
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