Daily Management Review

Tesla Plans To Construct A Megapack Battery Facility In Shanghai


Tesla Plans To Construct A Megapack Battery Facility In Shanghai
In order to augment output from the Megapack factory in California, Tesla Inc. is constructing a facility in Shanghai that can produce 10,000 Megapack energy products annually, the firm announced in a tweet on Sunday.
Chinese state-run news agency Xinhua broke the story first.
Xinhua reported at a signing ceremony in Shanghai that Elon Musk's company will break ground on the plant in the third quarter and begin production in the second quarter of 2024.
The new factory, which will initially create 10,000 Megapack units annually, or roughly 40 gigawatt hours of energy storage, to be marketed globally, would supplement a sizable existing electric vehicle manufacturing facility in Shanghai, according to Xinhua.
Tesla will increase production and reduce costs of its Megapack lithium-ion battery units at its new plant in Shanghai to fulfill the growing demand for energy storage as the globe transitions to using more renewable energy sources.
The majority of Tesla's revenue comes from its electric vehicle division, although Musk has promised to approximately double the size of its solar and battery businesses.
The Chinese battery giant CATL has been advancing its relationships with customers like Tesla in the area of energy storage battery supply since its Chairman Robin Zeng anticipated that this market will be larger than that of batteries for electric vehicles. (EV).
Currently, Tesla can produce 10,000 Megapacks annually in its Megafactory in Lathrop, California.
The business started making Model 3 vehicles in Shanghai in 2019 and can now produce 22,000 vehicles per week.
Reuters reported in May of last year that Tesla intended to increase the yearly capacity of the Gigafactory Shanghai, its most prolific auto manufacturing facility, by 450,000 units.
However, as demand began to wane in the third quarter, the American corporation struggled with mounting inventories in Shanghai, which prompted drastic price cuts in its key international markets in January.
The world's largest car market, China, saw EV sales growth decrease to 20.8% in the first two months of 2023 from 150% in the same time in 2018.