Tesla has completed construction of its Megapack grid-scale battery factory in Shanghai, China, marking the company’s second such facility and its first outside the United States. After approximately seven months of construction, the Shanghai “Megafactory” is now entering its trial production phase, Tesla China announced on Tuesday, according to local news outlet Xinhua Net.
The new facility, located in the Lingang Economic Development Group complex near Teslaās Shanghai Gigafactory, spans 200,000 square meters and has received an investment of approximately 1.45 billion yuan (about $201.7 million). Tesla expects to begin ramping production immediately, with the goal of delivering its first Megapacks by the first quarter of 2025. The factory aims to reach an annual output of 10,000 Megapacks, or 40 GWh, matching the capacity of Teslaās first Megapack facility in California.
Tesla had broken ground on the project in May 2024, with initial building materials arriving on-site in March of the same year. The company had previously selected Shanghai as the location for its second Megapack plant in April 2023, and held a signing ceremony in December 2023 to formally announce the project.
Teslaās U.S. Megapack production facility in Lathrop, California, which began operations in 2022, is also targeting an output of 10,000 units annually. However, it took the Lathrop plant longer to reach its 10,000-unit milestone, suggesting that the Shanghai facility could potentially achieve a faster production ramp. It remains to be seen how quickly either factory will reach full-scale production.