Tesla gains $31m Shanghai Land for new Megapack Battery Plant

Tesla launched a new megapack battery plant in China on Wednesday after acquiring land in Shanghai, Chinese state media has reported. The project will be capable of producing 10,000 megapacks per year, starting from the the fourth quarter of 2024, state media Xinhua reported.

Tesla paid 222.42 million yuan ($31.13 million) for use rights to a 19.7-hectare (48.7 acres) plot, a separate government statement said on Thursday.

Construction on the project is scheduled to begin in the first quarter of 2024, Xinhua said, adding that the site is near an existing Tesla plant producing Model 3 and Model Y cars.

Tesla describes megapack as a “powerful battery that provides energy storage and support, helping to stabilize the grid and prevent outages.”

The US electric vehicle (EV)-maker is hoping to lower the cost of the lithium-ion battery by utilising China’s battery supply chain. The Shanghai plant is a “milestone project” for Tesla, Xinhua quoted the carmaker as saying. Tesla said in April that it would start construction in the third quarter of this year with production expected to begin in the second quarter of next year.

The US electric vehicle manufacturer’s gigafactory in Shanghai is producing with annual capacity of 1.1 million units. Tesla has indicated it wants to expand its EV capacity in Shanghai, which would require regulatory approval.

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