US electric car maker Tesla signed an agreement on Friday for its first grid-side energy storage project in the Chinese mainland, according to a statement the company sent to the Global Times on Friday.
"It will enhance grid flexibility and help integrate renewable energy in the Lingang New Area, supporting Shanghai''s seasonal power demands and regional energy security," Dong said. Construction of Tesla''s energy storage Megafactory started in May 2024.
It represents the first large-scale industrial microgrid in the region and a significant milestone in Shanghai’s push toward distributed renewable energy. The Shanghai Megafactory installation is part of a broader push by Tesla to integrate solar power and energy storage across its global operations.
Construction on the Shanghai Megafactory began in May 2024 and the site began operations in early 2025, ahead of schedule. The site has an annual capacity of 10,000 Megapacks—or around 40 gigawatt-hours (GWh) of energy storage—matching the output of Tesla’s other Megafactory in Lathrop, California.
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