U.S. carmaker Tesla's new Megafactory in Shanghai, dedicated to manufacturing energy-storage batteries known as Megapacks, launched production on Tuesday, marking a significant expansion of the company's presence in China.
Hailed by Tesla as a "milestone," the new Megafactory is its second major plant in Shanghai and the first of its kind outside the United States, showcasing the company's deepening investment in China amid the global challenges of unilateralism and trade protectionism.
With an initial annual production capacity of 10,000 units – equivalent to roughly 40 gigawatt-hours of energy storage – this Megafactory is set to significantly contribute to Tesla's global energy storage goals. The company projects at least a 50 percent year-on-year increase in energy storage deployments in 2025.
Notably, mass production at the factory commenced just eight months after construction began, mirroring the rapid development of the Shanghai Gigafactory – Tesla's first plant in the country's eastern financial hub, which was built and operational within a year in 2019.
Tesla also operates a Megapack factory in California with the same annual capacity of 10,000 units.
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