After Tesla announced its Megapack factory in Shanghai, China back in April 2023, the company provided an update that the construction of the Megapack factory will begin this month. This Megapack factory will be set to become a key part of Tesla’s plan for the global market for commercial energy storage batteries. 

The Megapack Factory, situated within Tesla’s Gigafactory Shanghai complex within the Lingang area, will contain an initial annual production capacity of up to 10,000 commercial energy storage batteries. The amount of commercial energy storage batteries will be equal to around 40 GWh of energy storage. 

Tesla’s energy storage efforts have undergone rapid growth in recent years, with installed capacity reaching 14.7 GWh in 2023, scoring a remarkable 125 percent year-on-year increase. Furthermore, the Megapack is a critical asset in the transition toward renewable energy sources as each unit can store more than 3 MWh of energy, providing enough power to sustain 3,600 homes for an hour, according to Tesla. 

Moreover, Tesla had also aimed at expanding its battery cell production in Nevada with equipment being distributed from CATL. With Tesla receiving many hands from Chinese entities to assist in its business, the company is heading to more diverse avenues that will be noted in its portfolio. 

With Tesla making more efforts to expand its influence in the global markets, further efforts include the company’s tentative approval from Chinese authorities for its FSD program. As a result, Tesla’s business relationship with the Chinese EV market is reaching new heights that will reaffirm the company’s position in the global EV market. Production expected to kick off in the first quarter of 2025. 

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