Tesla has officially begun construction of the new Megafactory in Shanghai, China. The Megapack factory along with the electric vehicle factory will help accelerate the world’s transition to sustainable energy.
The company announced the update on its X account. Executives of Tesla’s China division and Chinese officials joined the ceremony. In the photo shared by the company, we can see a large screen showing construction work from the site where the Megafactory will soon be built.
Breaking ground on our new Megafactory in Shanghai! ⚡️
Together with Giga Shanghai, it will help accelerate the world’s transition to sustainable energy. 🌏 pic.twitter.com/BqZcn42Rhf
— Tesla Asia (@Tesla_Asia) May 23, 2024
The new construction project was signed with local authorities in April 2023. Tesla originally planned to begin building the facility before the end of last year, however the plan was delayed. At the end of December 2023, the company acquired land for construction in Shanghai. Tesla paid 222.42 million yuan (around $31.13 million) for the rights to use the 19.7-hectare (48.7-acre) site. The site is adjacent to the company’s existing factory that produces Model 3 and Model Y vehicles.
In early spring 2024, it became known that Tesla planned to begin construction in May. Two weeks ago, the Office of the Management Committee of Lingang New Area, China (Shanghai) Pilot Free Trade Zone issued the “Decision on Administrative Licensing Approval for the Construction Plan of Tesla Megafactory Project Related to River in South Fengjie River Management Area.” It approved the construction plan associated with the Tesla Megafactory project. This was the last obstacle to the start of the construction of the facility.
At its 2023 Investor Day, Tesla unveiled its Master Plan 3, one of the key components of which was the growth in the number of energy storage batteries around the world. The company already has one Megafactory producing Megapacks, located in the US. However, this is clearly not enough to satisfy demand, which continues to grow at a very fast pace, so the manufacturer continued its development. The new Megafactory in China will be a strong step towards achieving the goals set in Master Plan 3.
