Last month, local media outlet IT Home reported that Tesla’s Megafactory in Shanghai was already 60% complete, passing the halfway point. Tesla China officially started construction on the Shanghai Megafactory on May 23, 2024. Based on recent reports, Tesla China’s Megafactory will be completed less than a year after the start of production—proving the company’s remarkable speed again. 

The battery facility will be in the Lingang area, close to Tesla’s Shanghai Gigafactory, which is the company’s largest plant outside the United States, producing almost one million cars a year. Tesla’s Megafactory complex spans about 49.4 acres. Tesla estimates that the Megafactory in Shanghai will be able to produce 10,000 Megapack batteries — very large batteries used to store huge amounts of electricity — each year, or about 40 GWh of energy storage. 

The swift construction schedule is impressive, considering that only a month ago the factory was 45% finished. The factory’s development has not only proceeded ahead of anticipated timelines but also showcases Tesla’s ability to expedite large infrastructure projects efficiently. The new facility, sprawling over an area of approximately 200,000 square meters, is slated to bolster Tesla’s capacity to manufacture Megapacks.

Megapacks are meant to be used to help stabilize energy grids. Each unit can store enough energy on average to power 3,600 homes for one hour, the company says. They are designed to be deployed by utilities and power stations.

“For Tesla, it’s an important milestone,” Tom Zhu, senior vice president of Tesla, was quoted as saying in an article posted on the Shanghai government website on Friday. Tesla’s strategic choice to situate this factory in Shanghai aligns with its broader goal of penetrating the Asia-Pacific markets more deeply. The factory will serve as a crucial export hub, shipping Megapacks to various international markets and thereby contributing to the global push towards a sustainable, green future. This move is integral to Tesla’s ambition to support renewable energy adoption and promote energy independence around the world.

The establishment of this factory in Shanghai does more than just augment Tesla’s production capacity. It signifies Tesla’s commitment to enhancing energy security and sustainability. By localizing production in China—a market known for its rapid industrial growth and innovation—Tesla can reduce costs and optimize its supply chain. This not only improves the profitability of its energy storage division but also paves the way for more competitive pricing in global markets.

In its recent earnings call, Tesla estimated that its Shanghai Megafactory will begin with a 20 GWh run rate. Tesla’s Energy business will likely see a significant boost once the Megafactory in China starts shipments. 

In its Q3 2024 Update Letter, Tesla reported a record gross margin of 30.5% in the third quarter from its Energy division. The company shared that its Megafactory in Lathrop produces 200 Megapacks per week. 

To find out more about the latest construction industry updates and innovations, meet with solution providers and hear talks from expert speakers, attend the Innovatrix Constructing Mega Facilities: Advances in Planning, Design and Engineering Summit taking place in Houston, Texas, USA on April 9-10, 2025. 

For more information, visit our website or email us at info@innovatrix.eu for the event agenda. 

Source:

Tesla Mag

CNN