Tesla completed its second Shanghai factory, trial production starts

Tesla has begun trial production at its new Shanghai megafactory dedicated to manufacturing Megapack energy storage batteries. The mass production is expected to start in the first quarter of 2025.

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Located near Tesla’s existing vehicle assembly plant in Lingang, the factory marks the company’s first energy storage plant outside the United States. The groundbreaking ceremony occurred in May, and the construction was completed in seven months, Tesla China told the state-owned Xinhua agency on Tuesday.

The plant construction set a new record of “Tesla speed” in China, as Tesla’s first Shanghai plant was built within a year in 2019, Xinhua notes.

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The factory is designed to produce 10,000 Megapack units annually, equivalent to around 40 GWh of energy storage capacity. Each Megapack can store more than 3 MWh of energy, sufficient to power approximately 3,600 homes for an hour, according to Tesla. The total energy capacity produced by the factory could support about 50,000 homes in Shanghai for a year.

Tesla signed its first Megapack orders with the Shanghai Lingang Economic Development Group at the groundbreaking ceremony in May. The facility spans 200,000 square meters and represents an investment of approximately 1.45 billion yuan (202 million USD), according to local authorities.

The project is Tesla’s second major facility in Shanghai, following the construction of its Gigafactory in 2019. The company highlighted the rapid completion of the new plant as a continuation of its close collaboration with local partners. In addition to supplying the global market, Tesla’s energy storage business will benefit from partnerships with suppliers, including BYD’s subsidiary FinDreams, which is expected to begin providing battery cells in 2025.