Advertisement
New Zealand markets closed
  • NZX 50

    11,864.89
    -7.75 (-0.07%)
     
  • NZD/USD

    0.6144
    -0.0027 (-0.43%)
     
  • NZD/EUR

    0.5733
    -0.0008 (-0.14%)
     
  • ALL ORDS

    7,974.80
    -27.70 (-0.35%)
     
  • ASX 200

    7,724.30
    -25.40 (-0.33%)
     
  • OIL

    78.49
    -0.13 (-0.17%)
     
  • GOLD

    2,348.40
    +30.40 (+1.31%)
     
  • NASDAQ

    19,659.80
    +82.88 (+0.42%)
     
  • FTSE

    8,146.86
    -16.81 (-0.21%)
     
  • Dow Jones

    38,589.16
    -57.94 (-0.15%)
     
  • DAX

    18,002.02
    -263.66 (-1.44%)
     
  • Hang Seng

    17,941.78
    -170.85 (-0.94%)
     
  • NIKKEI 225

    38,814.56
    +94.09 (+0.24%)
     
  • NZD/JPY

    96.6520
    -0.1680 (-0.17%)
     

EV maker Tesla breaks ground on Megapack energy storage battery factory in Shanghai

BEIJING (AP) — Electric vehicle maker Tesla has begun construction of a factory in Shanghai to make its Megapack energy storage batteries, Chinese state media reported Thursday.

The $200 million plant in Shanghai’s Lingang pilot free trade zone will be the first Tesla battery plant outside the United States.

Tesla opened an EV plant in Shanghai in 2019 that assembles cars for China, Europe and other overseas markets. It is the No. 2 seller in the booming Chinese market for electric vehicles. The market leader is Chinese auto company BYD.

This aerial photo taken on Sept. 26, 2023 shows the Tesla Gigafactory in Lingang new area of the China Shanghai Pilot Free Trade Zone in east China's Shanghai. (Photo by Liu Ying/Xinhua via Getty Images)
The Tesla Gigafactory in Lingang new area of the China Shanghai Pilot Free Trade Zone. (Liu Ying/Xinhua via Getty Images) (Xinhua News Agency via Getty Images)

The state-run Xinhua News Agency lauded Tesla's commitment to investing in China and “defying the rhetoric of ‘decoupling’ and ‘de-risking’ from China.”

ADVERTISEMENT

It said the factory was slated to start mass production in early 2025, with an initial capacity of 10,000 Megapack units a year.

According to Tesla's website, each Megapack can store more than 3.9 megawatt hours of energy — enough to power an average of 3,600 homes for one hour. They are designed mainly for utility companies and commercial facilities.

Such storage units have become increasingly important with the growth in solar and wind energy, which only generate electricity when weather conditions are favorable and need to store it for when residential and commercial users need it.

China is by far the world leader in installing wind and solar capacity, making it a major market for energy storage.