The Tesla Energy Storage Gigafactory started construction on May 23 in Lingang, Shanghai this year. After the groundbreaking ceremony, Lingang Group also signed a contract with Tesla for the first batch of large-scale electrochemical commercial energy storage system Megapack in China.
According to a recent report by Jiefang Daily, the completion of the Tesla Energy Storage Gigafactory is imminent and is expected to be completed before the end of this year. It is likely to surpass its vehicle megafactory construction speed and achieve the entire process from start to finish within 7 months.
According to official information, the Tesla Shanghai Energy Storage Gigafactory is scheduled to start production in the first quarter of 2025. After production, the output of Megapack, a large-scale electrochemical commercial energy storage system, will reach 10,000 units with an energy storage capacity of nearly 40 gigawatt-hours.
The project covers a total area of about 200,000 square meters and has a total investment of approximately 1.45 billion yuan. Since confirming its investment intention in December last year, it has been utilizing the new project service package introduced by Lingang New Area in the field of engineering construction.
The Tesla Shanghai Energy Storage Gigafactory is Tesla’s first energy storage megafactory outside the United States and represents another major investment project in China following the Gigafactory Shanghai established by Tesla over ten years ago.
The Shanghai Energy Storage Gigafactory mainly produces Megapack, which is a large-scale commercial energy storage battery for global markets. Currently, Tesla’s energy storage products include Powerwall, Powerpack, and Megapack.
According to Tesla’s third-quarter financial report for 2024, revenue from its power generation and energy business was $2.376 billion, representing a year-on-year growth rate of 52.4%. The gross profit margin for its energy business reached 30.5%, setting a historical record significantly higher than that of its automotive business.
SEE ALSO: Tesla: Shanghai Megafactory Will Be Completed as Planned in 2025
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