Tesla to Build 'Megapack' Factory in Shanghai Amid US-China Tensions

Construction Starts in Q3, Production Begins in Q2 Next Year
Musk CEO Visits China After 3 Years

American company Tesla is building a production plant for large-capacity electric energy storage devices called 'Megapack' in Shanghai, China.

[Image source=Yonhap News]

According to China's state-run Xinhua News Agency on the 9th, a contract signing ceremony for the construction of Tesla's Megapack production plant was held in Shanghai with local officials including Wu Qing, Vice Mayor of Shanghai, and Tao Lin, Tesla Vice President, in attendance.

The Megapack is a large-capacity battery that stores electric energy generated from solar panels and wind turbines. Tesla's Megapack production plant to be established in Shanghai is scheduled to begin construction in the third quarter of this year and aims to start production in the second quarter of next year. Tesla plans to manufacture a total storage capacity of 40 GWh and produce 10,000 Megapacks annually at this plant to sell worldwide.

Previously, Tesla established and has been operating the Gigafactory, an electric vehicle production plant, in the Lingang Free Trade Zone in Shanghai. With the upcoming construction of energy-related facilities, Tesla's investment in China is expected to expand further. In this context, CEO Elon Musk is also reported to have visited China for the first time in three years, but Tesla has declined to disclose the schedule.

The Lingang Free Trade Zone, where Tesla's Shanghai Gigafactory is located, is an industrial zone covering 120 square kilometers, created in 2019 under the direction of Chinese President Xi Jinping.

A representative of the Lingang Free Trade Zone expressed expectations that the Tesla Megapack plant will create another industrial cluster worth 100 billion yuan (approximately 19.18 trillion won).

Amid escalating US-China tensions, foreign media are paying attention to Tesla's expanding investment in China. Tesla's Shanghai Gigafactory produced 711,000 electric vehicles last year, accounting for 52% of Tesla's total global electric vehicle production.

Earlier in January, CEO Musk expressed interest in the Chinese market during an earnings announcement, stating, "Chinese electric vehicle companies work the hardest and smartest."

This content was produced with the assistance of AI translation services.