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Tesla has launched a new mega factory project in Shanghai, which will be capable of producing 10,000 Megapacks a year, according to multiple news sources including China's Global Times.

The packs are designed for large-scale energy storage and efficient renewable energy distribution, and will be available for global sales.10,000 Megapack units annually equates to about 40GWh of energy storage capacity.

Located in the Lingang area of the Shanghai Pilot Free Trade Zone, the facility is slated to begin construction in early 2024 and commence operations by the end of that year, the report says. 

The signing ceremony for the project took place on Friday morning. 

"With Tesla's efficient production and manufacturing capabilities, coupled with the high-quality business environment in Lingang, the mega factory project is expected to refresh the 'Tesla speed,'" Tao Lin, vice president of Tesla, told Xinhua. 

Megapack at Tesla's Shanghai Gigafactory

"China has been continuously improving its level of opening up in recent years, and Tesla is both a witness and a beneficiary."

Tao raved about China, telling Xinhua that he had witnessed and benefited from the country's ongoing expansion in its openness to international businesses. He emphasized that China's progressive policies, advanced development strategies, and favorable business climate present vast opportunities for corporations.

Xinhua noted that from January to November of this year, the Shanghai Gigafactory has delivered over 850,000 vehicles, marking a 30% increase compared to the previous year. It has also become the primary global export hub for Tesla.

For Tesla, the Chinese market is an essential component of its growth strategy. Shanghai is a crucial production hub for Tesla, not only responsible for producing vehicles that are sold in China, but also Teslas that are eventually exported to other nations across Asia and Europe. 

Since 2019, Tesla has been working to expand its footprint in the area. 

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