Tesla’s Megafactory in Shanghai is already 60% complete after just four months of construction. This puts the facility on pace to begin production of Tesla’s utility-scale battery energy storage product, Megapack, in early 2025.
Located in the Lingang New Area of Shanghai, this Megafactory is strategically placed near Tesla’s existing Shanghai Gigafactory. The Megafactory in Shanghai will be Tesla’s first outside of North America, with the company’s other Megafactory located in Lathrop, California.
According to the most recent update from Tesla, the Megafactory is expected to begin production of Megapacks in the first quarter of 2025. Once production has ramped to full capacity, the Shanghai Megafactory will be able to produce 40 gigwatt-hours (GWh), the same production output at its counterpart in California.
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This translates to the production of roughly 10,000 Megapack units each year from China and another 10,000 from California, helping to meet the growing demand for Tesla utility-scale energy storage solution, which currently has a multi-year waitlist.
Tesla’s Energy division has experienced exponential growth in recent years, driven by increased demand for its energy storage products, in particular Megapack. In the second quarter of 2024 alone, Tesla set a new record for energy deployments, deploying 9.4 GWh of battery storage.
This followed a strong first quarter where 4.1 GWh of energy storage was deployed—a 157% year-over-year increase.
These figures are in line with CEO Elon Musk’s predictions that Tesla’s energy business would eventually surpass its automotive business in terms of growth.
