Tesla officially breaks ground at Megafactory in China

Tesla has officially broken ground on its new Megafactory project to build Megapacks for energy storage in China.

The Megafactory in Lathrop, California, was Tesla’s first dedicated factory to produce Megapacks, which were previously produced at Gigafactory Nevada.

It is still ramping up to its full capacity of 40 GWh worth of Megapacks, a battery pack for utility-scale energy storage projects, but it has already helped Tesla break new records of energy storage deployment almost every quarter.

Earlier this year, Tesla announced a plan to replicate the Megafactory in China through a deal with Shanghai’s Lingang authorities.

The project had an official signing ceremony late last year.

When first announcing the factory, Tesla aimed at starting construction during the second half of 2023 and production in Q2 2024.

However, it looks like the project suffered some delays.

The new timeline announced with the signing ceremony stated that construction was going to start soon for a production start toward the end of 2024.

Today, Tesla announced that it is officially breaking ground on the project:

Tesla officials at the ceremony updated the timeline again and they are now aiming for production to start in the first quarter of 2025.

That’s about a year behind the original timeline, but it’s also a super aggressive timeline considering it’s less than a year after breaking ground.

Like the Megafactory in California, Tesla aims for Megafactory Shanghai to eventually produce about 10,000 Megapacks per year, which is about 40 GWh of energy storage capacity.

On top of increasing its total energy storage output, the new production hub is also going to help Tesla slash its logistical costs by shipping its many Megapack projects in Asia-Pacific from there rather than the US.