This battery plant is Tesla's first energy storage factory outside the US, focusing on producing its Megapack energy storage systems. It's also a significant investment for Tesla in China, following the launch of its Shanghai Gigafactory back in 2019.
Construction on the mega battery plant started in May, and it passed its completion inspection on December 27, achieving a remarkable turnaround of just seven months from groundbreaking to finish, which the company proudly dubbed "Tesla speed."
The facility aims to produce 10,000 commercial Megapack energy storage batteries each year, with a total storage capacity nearing 40 gigawatt-hours. These batteries will be distributed globally, as reported by the Shanghai Observer.
Energy storage is becoming a key revenue driver for Tesla. Their third-quarter 2024 financial report revealed that revenue from energy generation and storage hit $2.376 billion, marking a 52.4% increase from the previous year. The gross profit margin for this sector reached a record high of 30.5%.
The Shanghai Gigafactory has evolved into a crucial global export hub and manufacturing center for Tesla, sending products to various international markets, including Europe, Asia-Pacific, and Australia, as noted in another Shanghai Observer report.
Construction of the Shanghai Gigafactory began in January 2019, and the first vehicles rolled out in December 2019, just under a year after breaking ground. By September 2024, Tesla announced it had shipped its millionth vehicle made in China from this plant.