Tesla is ready to build new Megafactory in China
What's the story
Tesla has kicked off its Megafactory project in China by signing a land acquisition deal, marking a significant milestone for the company. Located in Shanghai, this new production hub will enable Tesla to reduce logistical costs by shipping its Megapacks throughout the Asia-Pacific region from this facility instead of the US. The factory will produce 10,000 Megapacks annually, equivalent to about 40GWh, starting Q4 next year. A Megapack is a large-scale rechargeable lithium-ion battery that provides energy storage.
Timeline
Land acquisition and construction timeline
Tesla shelled out CNY 222.42 million (around Rs. 266 crore) for the rights to use a 48.7-acre plot in Shanghai. Construction is slated to commence in the first quarter of 2024, with production expected to begin by year's end. The site is conveniently situated near an existing Tesla plant that manufactures Model 3 and Model Y vehicles. Initially, Tesla had planned to start construction in the latter half of 2023 and kick off production in Q2 2024.
Expansion
Megapack production and expansion plans
The Shanghai Megafactory will have the capacity to produce 10,000 Megapacks per year. These powerful batteries offer energy storage and support, helping to stabilize the grid and prevent outages. Tesla aims to reduce the cost of lithium-ion batteries by tapping into China's battery supply chain. The company's Gigafactory in Shanghai currently boasts an annual capacity of 1.1 million units, and Tesla has expressed interest in expanding its electric vehicle capacity in Shanghai, pending regulatory approval.