On May 23rd, Tesla's Shanghai Energy Storage Super Factory held a groundbreaking ceremony in the Lingang New Area of the Shanghai Free Trade Zone. Tesla and Lingang Group have signed the first batch of Megapack ultra large commercial energy storage batteries in China, marking the official start of a new chapter in Tesla's energy storage business in China.
Tesla's Shanghai Energy Storage Super Factory is Tesla's first energy storage super factory outside of the United States. The factory is expected to start production in the first quarter of 2025. After production, the annual production of Megapack, a super large energy storage battery, will reach 10000 units, with a storage capacity of nearly 40 gigawatt hours (1 gigawatt hour=1000 megawatt hours), which means the hourly power generation will reach 40 million kilowatt hours, equivalent to the annual electricity consumption of 50000 households in Shanghai.
Mike Snyder, Senior Director of Tesla Energy and Charging Business, introduced that Megapack, as Tesla's star product, has excellent performance and flexible scalability, and will meet the diverse energy needs of global customers. It can be integrated and installed with battery modules, inverters, and temperature systems at any time, helping the power grid operate more stably and sustainably. Each battery module is matched with a dedicated inverter and contains integrated safety systems, professional monitoring software, etc., greatly improving energy efficiency and safety. Meanwhile, Megapack batteries can also be updated in real-time through OTA air upgrades, continuously optimizing their functionality.
Wu Xiaohua, Deputy Secretary of the Party Working Committee of Lingang New Area, revealed that the negotiation and signing of the Shanghai Energy Storage Super Factory only took one month, once again refreshing the "Lingang speed". Mike Snyder stated that the sustained strong support from the Shanghai and Lingang governments enabled Tesla's energy storage super factory to officially start construction in such a short period of time.
Tesla Senior Vice President Zhu Xiaotong stated that Tesla is committed to forming an innovative technology complex that vertically integrates the entire industry chain of electric vehicles, energy storage products, artificial intelligence (AI), and robotics. Energy storage business is an important component of its diversification strategy. The commencement of the Shanghai Energy Storage Super Factory will further consolidate Tesla's leading position in the energy storage field and promote the progress and development of the global green energy industry.
Since 2015, Tesla has launched the Powerwall household energy storage battery and Megapack ultra large commercial energy storage battery in the United States, targeting the household energy storage market and the commercial and industrial energy storage markets, respectively. Tesla's energy storage products are currently distributed in over 65 countries and regions worldwide. The total installed capacity in 2023 was 14.7 gigawatt hours, and in the first quarter of 2024, the installed capacity reached a record high of 4.1 gigawatt hours, making it one of Tesla's fastest-growing businesses. In the first quarter of 2024, Tesla's energy storage business gross profit increased by 140% year-on-year.
The energy storage equipment industry is also the core content of Shanghai's high-quality development. Tang Wenkan, Deputy Director of the Municipal Commission of Economy and Information Technology, stated that as a major energy project in Shanghai, the construction of the Shanghai Energy Storage Super Factory will help accelerate industrial agglomeration and build an energy storage industrial park in Lingang; At the same time, we will promote the construction of a green energy system in Shanghai, enabling the city to develop in a more environmentally friendly and sustainable direction.