Recent reports from Chinese state media reveal that Tesla (TSLA.O) has finalized the acquisition of a 19.7-hectare parcel in Shanghai for the establishment of a megapack battery manufacturing facility. The transaction, amounting to 222.42 million yuan ($31.13 million) for land use rights, was disclosed in an official government statement on Thursday.
Significantly located in close proximity to an existing Tesla plant producing Model 3 and Model Y vehicles, the new megapack plant is poised to contribute to the company's strategic growth initiatives.
According to information from the Xinhua News Agency, construction of the megapack battery plant is slated to commence in the first quarter of 2024, with production anticipated to commence in the fourth quarter of the same year.
This timeline diverges from Tesla's previous announcement in April, where plans were outlined for construction initiation in the third quarter of the present year and production launch in the second quarter of the subsequent year.
With a projected annual capacity of 10,000 megapacks, the new facility underscores Tesla's commitment to advancing sustainable energy solutions. As the company seeks to bolster its electric vehicle (EV) production capabilities in Shanghai, obtaining regulatory approval will be pivotal to realizing its expansion goals. Tesla's strategic maneuvers in the region align with its overarching mission to revolutionize and redefine the future landscape of clean and renewable energy.