Tesla Inc (TSLA.O) tweeted on Sunday that it will construct a Shanghai facility to produce 10,000 Megapack energy products per year to support its California Megapack production.
Xinhua broke the news. At a Shanghai signing ceremony, Xinhua claimed that Elon Musk’s manufacturer will start manufacturing in 2024.
Xinhua said the new facility would create 10,000 Megapack units a year, equal to 40 gigawatt hours of energy storage, to sell internationally.
Tesla’s new Shanghai factory will employ China’s world-leading battery supply chain to increase Megapack lithium-ion battery unit production and cut costs to satisfy global energy storage demand as the globe uses more renewable energy.
Tesla makes most of its money from electric cars, but Musk has pledged to develop its solar energy and battery business to the same scale.
Chinese battery giant CATL (300750. SZ) has been extending its relationships with clients like Tesla in energy storage battery supply, which Chairman Robin Zeng believed to have a larger market than electric car batteries (EV).
Tesla’s Lathrop Megafactory can produce 10,000 Megapacks per year.
SinceSince 2019, the firm has produced 22,000 Model 3 cars weekly in Shanghai.
Last May, Reuters claimed that Tesla planned to add 450,000 vehicles to its most prolific automaking operation, the Gigafactory Shanghai.
In January, the U.S. corporation aggressively reduced prices in its key markets due to mounting inventories in Shanghai as demand weakened in the third quarter.
China, the world’s largest car market, saw 20.8% EV sales growth in the first two months of 2023, down from 150% a year earlier.
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