SHANGHAI — Tesla will construct a manufacturing facility in Shanghai to fabricate its large-scale energy-storage battery generally known as the Megapack, the Chinese language state information company Xinhua reported on Sunday.
Tesla, which is owned by Elon Musk, will break floor on the plant within the third quarter of this yr and begin manufacturing within the second quarter of 2024, Xinhua reported.
The brand new manufacturing facility will complement Tesla’s present plant in Shanghai, the place it makes electrical automobiles, and it’ll initially produce 10,000 Megapacks a yr, equal to round 40 gigawatt-hours of vitality storage, to be bought globally, Xinhua stated.
With the brand new plant, Tesla will make the most of China’s dominant battery provide chain to extend output of its Megapacks, and to decrease their prices, in hopes of assembly the rising international demand for vitality storage because the world shifts to utilizing extra renewable vitality.
Tesla generates most of its cash from its electric-car enterprise, however Mr. Musk has dedicated to increasing its photo voltaic vitality and battery enterprise to roughly the identical measurement as its automotive enterprise.
The Chinese language battery big CATL has been deepening its collaborations with purchasers, together with Tesla, in provides for energy-storage batteries. CATL’s chairman, Robin Zeng, expects energy-storage batteries to have a bigger market than batteries powering electrical automobiles.
Tesla already has a manufacturing facility for its Megapacks in Lathrop, Calif., the place it could possibly manufacture 10,000 models yearly.
The corporate started producing its Mannequin 3 automobiles in Shanghai in 2019, and is now capable of produce 22,000 automobiles there per week.
Tesla has struggled with rising stock in Shanghai as demand started to weaken within the third quarter of 2022, resulting in aggressive value cuts in its main markets globally in January.
Progress in gross sales of electrical automobiles in China, the world’s largest auto market, has slowed to roughly 20 % within the first two months of 2023.