Tesla planning a new Megafactory in Shanghai for 'Megapack' energy storage systems

Tesla Inc. is all set to introduce its 'Megapack' battery energy storage systems (BESS) in the Chinese market, with the brand already enjoying a phenomenal success with its EVs in the country. According to media reports, the company is to open a new facility in Shanghai to make commercial energy storage batteries for both the domestic and global markets.

CNEVPOST reports that Tesla has recently signed a deal with Shanghai's Lingang authorities to build a new 'Megafactory' in the area dedicated to its energy storage product 'Megapack', citing an announcement from the Lingang special area administration.

The proposed plant will be the company's first-ever factory outside the US to make energy storage systems. Reports suggest an initial planned capacity of up to 10,000 energy storage batteries and a cumulative storage scale of nearly 40 GWh.

Tesla is expected to break ground with the new plant in the third quarter of this year, with production targeted from the second quarter of 2024.

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It is to be noted that the Shanghai's Lingang is home to Tesla's gigafactory meant for EVs in China, which is also the brand's largest EV production facility globally. It is likely that the company wants to leverage the region's logistics and raw material supply chain advantages that is already well established with its EV manufacturing base.

Tesla believes that the market for its stationary battery systems is as big as EVs in global markets in the coming years. The 'Megapacks' can store more than 3 MWh of power, equivalent to support 3,600 homes for one hour power backup, which also regulating power outages and stabilize the grid.

At present, the Tesla Megapacks are manufactured at the company's state-of-the-art facility at Lathrop, California. The factory has a reported capacity to make 10,000 megapacks per year.