Tesla, the American electric vehicle maker, is advancing its global manufacturing footprint with a new facility planned in Shanghai. The project targets Megapack energy storage batteries, a product line engineered to stabilize power grids and cut the risk of outages across regions that rely on reliable electricity supply.
The Shanghai megafactory aims for an annual output of about 10,000 Megapacks, a milestone Tesla announced on its official social channels. The message outlined the plant’s mission to bolster global Megapack supply and enhance grid resilience. This effort sits within Tesla’s broader strategy to expand energy storage alongside its electric vehicles and related energy initiatives.
Construction of the megafactory is slated to begin in the third quarter, with production and distribution expected to ramp up in the early to mid-2024 window. Local authorities and state media have framed the project as a boost to the regional manufacturing ecosystem and to energy infrastructure in eastern China.
Tesla already runs a Megapack line at its Lathrop facility in California, which reports an annual output close to 10,000 units. That production contributes substantial capacity to stabilize grids in multiple markets, underscoring the company’s ability to scale storage alongside vehicle manufacturing.
Specifications published by Tesla indicate that each Megapack unit stores more than 3 MWh of energy. This capacity supports thousands of homes during peak demand or outages, providing a reliable backstop for electrical systems facing stress from weather events and shifting consumption patterns.
Tesla’s first major push outside the United States started with the Shanghai Gigafactory, opened in 2019. Media in the region highlighted the site as a turning point in Tesla’s international manufacturing plan, signaling a deeper commitment to global production capability.
Since 2019, the Lingang free-trade zone in Shanghai has hosted expanded production and new facilities, including a plant dedicated to vehicle charging networks and related energy products. State media and business outlets have described these additions as part of a broader effort to diversify Tesla’s global supply chain and to grow energy storage capacity in key markets.
Officials cited by national media described the Shanghai Megafactory as a catalyst for a stronger industrial cluster in the area, with forecasts of higher regional output and increased economic activity in the coming years. The outlook reflects broader optimism about manufacturing investment and the energy transition agenda in the region. [Citation: Xinhua]