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Tesla’s first overseas energy storage plant starts operating as global competition from Chinese firms and pricing pressures mount. Tesla has officially announced the start of production at its Shanghai energy storage factory, the company’s first Megapack manufacturing facility outside the United States.
The energy storage factory covers an area of approximately 200,000 square meters, which is equivalent to the size of 30 standard soccer fields. It initially plans to produce 10,000 Megapack units a year, with a storage capacity of nearly 40 GWh.
This facility is expected to greatly enhance Tesla's ability to meet the burgeoning demand for large-scale energy storage solutions, particularly in Asia, where energy needs are rapidly escalating.
Bloomberg NEF estimates that global storage capacity additions reached 69 GW/169 GWh in 2024, a 76% increase from the previous year. Meanwhile, China’s National Energy Administration (NEA) reported that the country deployed 42.37 GW/101.13 GWh of new energy storage capacity in 2024, marking an even sharper increase of 103% and 136%, respectively.