Posted on 25 Dec 2023
Tesla has purchased a parcel of land for a Megapack factory in Shanghai, bolstering the company’s energy-storage battery production.
Once complete, the facility will have an initial production capacity of 10,000 battery packs/year, according to state news agency Xinhua. Construction is now scheduled to begin in Q1 2024, with production slated for Q4.
Tesla reportedly paid 222.42 million yuan ($31.13 million) for the 19.7-hectare land plot, which is located near an existing Tesla plant. Rather than building EV batteries, this new Megapack factory will instead produce energy-storage batteries, which can help boost grid resiliency and prevent power outages.
The Megapack is designed to support utilities and large-scale commercial projects, Kallanish notes. According to Tesla’s website, each unit can store over 3.9 megawatt-hours of energy – enough to power roughly 3,600 homes for one hour.
With this venture in Shanghai, Tesla will have a dedicated Megapack factory in both China and the US, as the company already has one such facility in California. Furthermore, Tesla’s EV factory in Nevada can produce the Megapack, giving the company additional flexibility.
Tesla’s energy generation and storage business has become a larger revenue stream for the company in recent months. In Q3 2023, Tesla’s energy business accounted for 6.7% of its total revenue, as well as 9.1% of its total gross profit.
In that same quarter, Tesla deployed 3,653 MWh in energy storage, representing a 90% increase year-over-year. While electric vehicles are still Tesla’s bread and butter, the company reported $1.56 billion in revenue from its energy generation and storage business in Q3.
Outside of the Megapack, Tesla also produces the lithium-ion battery-based Powerwall. This integrated battery system, which recharges using solar power, is marketed at consumers as an alternative to a traditional backup generator.
Source:Kallanish
