Tesla energy storage Gigafactory in Shanghai

Tesla's new gigafactory is coming to Shanghai. On April 9, the signing ceremony of Tesla's energy storage Gigafactory project was held in Shanghai. The factory will be planned to produce Tesla's super large commercial energy storage battery (Megapack). The project is also Tesla's first energy storage gigafactory outside the United States.

According to media reports, the news of Tesla's new factory comes ahead of CEO Elon Musk's visit to China. Tesla is keeping a low profile on Musk's trip to China. Musk's visit to China may begin as early as this week and include a visit to Tesla's Gigafactory in Shanghai, sources said.

1.The new plant opened in the third quarter of this year

On April 9, the Management committee of Lingang New Area of China (Shanghai) Pilot Free Trade Zone signed a contract with Tesla, and Tesla energy storage Gigafactory project settled in Lingang New Area.

According to reports, Tesla's energy storage Gigafacfactory will plan to produce Megapack, with an annual production capacity of 10,000 commercial energy storage batteries and an energy storage scale of nearly 40GWh at the initial stage. The products will cover the global market. The Tesla Energy Storage Gigafactory project is scheduled to begin construction in the third quarter of 2023 and begin production in the second quarter of 2024.

In the third chapter of Tesla's "secret plan" released recently, the company has set a goal to fully shift to sustainable energy and achieve 100% sustainable energy by 2050, and the Tesla energy storage Gigafactory project is one of the important measures to achieve this goal.

Megapack is a large battery that stores and supplies energy, helping to stabilize the power grid and prevent power outages, enhancing a sustainable energy infrastructure. "Flexibility is a key feature of the Tesla Ultra Large commercial storage battery, which can support low-cost, high-density utility projects on a gigawatt hour scale." Tesla claims that each Megapack battery can store more than 3MWh of energy, enough to power 3,600 homes for an hour.

2.Tesla is accelerating its expansion into energy storage

The Tesla Megapack battery is helping countries around the world, including the U.S., the U.K. and Australia, develop new energy sources. In 2019, Tesla officially launched the Megapack large-scale energy storage system for the utility class energy storage market, and in 2022, the company will upgrade the Megapack product line to the lithium iron phosphate(my company provide the lithium iron phosphate LiFePO4 Powder)  solution.

At the design level, Tesla has matched each battery module with its own inverter, and each unit has undergone a large number of fire tests, including integrated safety system and professional monitoring software. The Megapack battery can also be updated in real time over OTA for continuous optimization.

Musk singled out energy storage on its 2022 Q4 earnings call, saying it had also seen historic growth in energy storage and continued to accelerate.

Tesla believes that energy storage business will account for 10% of global annual GDP in the future, which requires the joint investment of the whole industry to meet the needs of mankind. Tesla's energy storage business is expected to grow more than 10 times in the future, with 60% year-on-year growth in 2022 alone and a compound growth rate of 65% since 2016. In 2023, Tesla has set a goal of building 100GWH of energy storage.

Earnings data showed that Tesla's energy segment generated $1.3 billion in revenue in the fourth quarter of 2022, up 90% from the same period last year. Energy storage is far and away the leader, with 6.5GWh deployed in 2022, including 2.5GWh in Q4 alone, an increase of 152% year on year.

3.Tesla has lost another in Shanghai

In 2019, Tesla's Shanghai Gigafactory set a "Tesla speed" of "starting the factory that year, starting production that year, and delivering that year". Currently, the Chinese market is Tesla's second largest market after the United States. Meanwhile, the Shanghai Gigafactory is Tesla's production center with the highest capacity in the world.

"Five years ago, Tesla's Shanghai Gigafactory project created the world-renowned 'Shanghai Service and port speed', which helped Shanghai become a new high ground for the development of the new energy vehicle industry. Today, we will witness the signing of the Tesla energy storage Gigafactory project, which will surely become an important force to promote the development of Shanghai's new energy storage industry and green and low-carbon transformation." Zhuang Mudi, deputy secretary-general of the Shanghai Municipal government, said.

According to the official account of "Shanghai Release", this signing is an important measure of Tesla to improve the global production layout and implement the vision of accelerating the world's transformation to sustainable energy. It will certainly promote the development of Shanghai's new energy storage industry and green and low-carbon transformation, and also demonstrates Shanghai's clear attitude of increasing the attraction and utilization of foreign investment and continuously creating a market-oriented, legalized and international business environment. It will help boost the confidence and strength of foreign enterprises to invest in China.

It is reported that Lingang New Area has formed a relatively complete industrial chain layout in the industry field of "wind - light - hydrogen - electricity - manufacturing - storage - use". In the future, Lingang New Area will focus on the new energy and energy storage industry to formulate industrial development plans, research and improve industrial policies, accelerate the gathering of key enterprises and major projects, and build Lingang New Area into a new highland of new energy and energy storage industry cluster in Shanghai and even the whole country.

Tesla deliveries continued to grow in March, with 88,869 vehicles delivered at the Shanghai Gigafactory, up 35% from a year earlier, according to the federation's latest estimated sales figures. According to the global production and delivery data of Tesla in the first quarter of 2023, in March of 2023, Tesla produced more than 440,000 electric vehicles worldwide and delivered more than 422,000 vehicles, with year-on-year growth of 44.3% and 36.4% respectively.