Tesla China sets sights on Shanghai Megafactory construction next

Key Points

• 🏭 Tesla China plans to start construction of the Megafactory in Shanghai soon.
• 🚚 The Megafactory will produce energy storage products mainly for export.
• 📅 Construction is scheduled to start by the end of the third quarter.
• 🌍 The Shanghai Megafactory will likely export Megapack storage batteries to the same locations as Giga Shanghai’s electric vehicles.
• 🚀 Tesla aims to start production at the Shanghai Megafactory by Q2 2024 with an initial capacity of 10,000 units per year or about 40GWh.

Tesla China plans to start the construction of the Megafactory in Shanghai soon, according to President Allan Wang at the International Trade in Services Fair. 

The Shanghai Megafactory’s construction is scheduled to start by the end of the third quarter. Since it is already September, Tesla China may start building the local Megafactory over the next few weeks. 

“We expect to start building the Megafactory for energy storage products in the near future, and the products will mainly be used for export,” President Wang said. 

The Tesla Megafactory in Shanghai’s Lingang area will likely export the company’s Megapack storage batteries to the same locations where it exports Giga Shanghai’s electric vehicles. The U.S.-based company aims to start production at the Shanghai Megafactory by Q2 2024. Tesla’s estimated initial production capacity for the China-based Megapack factory is 10,000 units per year or about 40GWh.

On April 9, 2023, Tesla signed an agreement with Shanghai’s Lingang special area administration to build the Megafactory. A few weeks later, on April 20, 2023, Tesla revealed that its Energy sector’s battery storage deployments increased by 360% year-over-year to 3.9 GWh. The company credited its Megafactory in Lathrop, California, for the significant spike in deployments. 

“Energy storage deployments increased by 360% YoY in Q1 to 3.9 GWh, the highest level of deployments we have achieved due to the ongoing Megafactory ramp. The ramp of our 40 GWh Megapack factory in Lathrop, California has been successful, with still more room to reach full capacity,” wrote Tesla in its Q1 2023 Update Letter. “This Megapack factory will be the first of many. We recently announced our second 40 GWh Megafactory, this time in Shanghai, with construction starting later this year.”