Azernews.Az

By Alimat Aliyeva

Tesla's newest battery factory in Shanghai, which will produce Megapack batteries, officially began production on Tuesday, February 11, Azernews reports.

In addition to the massive electric vehicle manufacturing plant already located in Shanghai, the new facility will initially produce 10,000 Megapack units per year, equivalent to around 40 GWh of energy.

In early 2017, Tesla launched the world's largest backup energy storage facility at that time, utilizing only lithium-ion batteries. The installation capacity was 20 MW, with an energy capacity of 80 MWh. In 2019, the Megapack batteries replaced the 200 kWh Powerpack 2, with the Megapack offering a capacity of 3 MWh and 1.5 MW.

The new plant is located next to Tesla's existing electric vehicle manufacturing facility in the Lingang district of Shanghai. It will produce Megapack batteries for both the domestic market and for export. According to the company, each Megapack unit has the capacity to power approximately 3,600 homes for one hour.

Tesla's move to expand its battery production capacity is a significant step in the company's broader strategy to become a key player in the global energy storage market. The Megapack, designed for utility-scale energy storage, has the potential to revolutionize the way renewable energy is stored and distributed. With increasing investments in clean energy, Tesla's Megapack plants could help stabilize power grids by storing excess solar or wind energy and providing it back to the grid during periods of high demand.

As the world transitions to greener energy, this new battery production facility is expected to play a crucial role in the global effort to reduce reliance on fossil fuels and combat climate change. Moreover, Tesla’s expansion in Shanghai also highlights the company’s ambition to tap into the rapidly growing Chinese market for renewable energy solutions, positioning itself as a leader in both electric vehicles and energy storage.