Tesla has announced the commencement of construction for a mega-factory in Shanghai, which is set to bolster the company’s energy storage capabilities. This ambitious project aims to produce 10,000 Megapack units annually.

The groundbreaking ceremony is scheduled for May, with the factory expected to enter mass production in the first quarter of 2025. This factory will be Tesla's first energy storage mega factory established outside the United States.

The production capacity of the new facility will amount to nearly 40 gigawatt hours of energy storage, which is significant for supporting grid stability and minimizing power outages. The Megapack by Tesla is designed to provide robust energy storage solutions.

Situated in the Lingang new area of the China (Shanghai) Pilot Free Trade Zone, the factory is projected to begin operations in the fourth quarter of 2024. Tesla’s strategic move reflects its ongoing commitment to expansion in China.

Tesla has a history of investment in the Lingang area, having previously enhanced the production capabilities of its Gigafactory Shanghai and established additional facilities, including a supercharger manufacturing plant.

The journey began in January 2019 when Tesla broke ground for Gigafactory Shanghai, becoming the first wholly foreign-owned car manufacturing plant under a policy that allowed foreign companies to operate independently in China.

This initial plant has demonstrated high operational efficiency, producing its first batch of vehicles within a year of commencement. It has set a benchmark for future projects.

The unveiling of the mega factory project last December was hailed by Tesla as a "milestone project," representing not only growth for the company but also a significant step forward in the global energy storage market.

(With input from Xinhua)