Tesla has received approval from the Office of the Management Committee in Lingang New Area, China Pilot Free Trade Zone, for its Megafactory construction plan in Nanhui New Town, Pudong New Area.
The Megafactory will cover an area of 204,359.92 square meters and is expected to complete trial production in 2024, according to local media reports. Lu Yu, the Director of the high-tech Department of the Administration Committee of Lingang New Area, revealed that the Megapack factory is estimated to reach a production capacity of 40 GWh. Tesla Megapacks manufactured in China will be distributed to global markets.
Preliminary preparations for the Megafactory site began in March, and construction is slated to commence this month, slightly over a year after the project was first announced by Tesla. In April 2023, Tesla announced plans to manufacture 10,000 Megapacks per year in China, with deliveries expected to start from the Megafactory in China by Q1 2025.
The establishment of the Megafactory in China could potentially help Tesla reduce costs in countries with high demand for Megapacks, such as Australia. Last month, Neoen unveiled plans to expand the Collie Battery into a 560 MW/2,240 kWh system with Tesla Megapacks, tripling its size to become the largest battery in Australia.
Tesla reported a record-high deployment of Megapacks in Q1 2024, contributing to record profitability in its energy business. Elon Musk, Tesla’s CEO, expressed confidence in the growth of the Megapack business, stating, “It will increase—we actually know that it will—significantly faster than the car business, as we expected.”
$TSLA 🇨🇳
According to news, Tesla China was issued a permit to construct a mega factory in Shanghai on the 11th. pic.twitter.com/cPG0OkNPes— Tsla Chan (@Tslachan) May 12, 2024
