Tesla announces it’s building a new factory in China

Tesla storage systems have become very popular. So much so that there is a waiting list of almost two years. The new factory hopes to reduce those lead times. We tend to associate Tesla solely and exclusively with its electric cars, but the company has a much more extensive product portfolio. In addition to the recharging business, Elon Musk‘s company offers some of the most in-demand energy storage solutions in the world. The well-known Megapacks are, in short, high-capacity batteries that can store energy and dispose of it when required. A practical solution that in many cases has been very useful in critical situations or as a backup in power plants.

In the summer of 2019, Tesla introduced its Megapacks to the world and the business quickly grew like foam, even more than the car section itself. In a short time, the installations doubled, mainly in the United States, where they have served as energy backups at certain times. They are also an excellent system for lowering electricity bills. They accumulate energy when it is cheaper and serve as a source of supply when the rates are higher due to the lack of contribution.

Although not cheap, Megapacks have won over many local, state, and private agencies. Demand has skyrocketed in the past two years, and Tesla currently offers a two-year installation lead time. The company can’t keep up with producing them since they are currently only assembled in California. China has established itself as an ideal destination for all things electrical. Tesla’s Shanghai Gigafactory is considered one of the best car factories in the world. Taking advantage of this good commercial harmony, Tesla announces that China will have the second Megapacks factory, the largest to date.

As always in China, projects are surrounded by impressive deadlines and figures. The agreement contemplates that the works begin throughout the next quarter and that production starts at some specific time in the second quarter of next year.

Less than a year of construction shows that the Chinese work at a different pace. Once construction is complete and factory operations begin, Tesla, hopes to quickly export the Megapacks around the world, thereby reducing lead time significantly. 

The project contemplates a production capacity of 10,000 Megapacks per year, which means around 40 GWh per course. On average, the large Mepapacks installations, known as Powerpacks, are intended for industrial or commercial use.

Tesla Megapack
Tesla Megapack

The largest infrastructures offer up to 3 MWh of capacity and up to 130 kW of power per battery. In one of its latest projects, Tesla, together with Arevon, has deployed a huge solar park with 528,000 panels and 360 MWh of batteries. With the energy received and accumulated, it will be able to supply more than 60,000 homes in the area.

Lynda Reeder

I'm Lynda, I currently own Tesla. I write about electric cars. My aim is to provide information on how technology can improve the ownership experience of electric vehicles.

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