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Tesla Will Construct New Megafactory in Shanghai

Tesla’s next Megapack factory will be able to produce 10,000 Megapacks per year.

Maria Guerra, Senior Editor-Battery Technology

April 10, 2023

1 Min Read
Energy storage system by Tesla.Melissa Sue Gerrits / Stringer/ Getty Images News via Getty Images

Tesla announced that it will construct another Megafactory but this time in Shanghai—Tesla currently has one Megapack factory in Sparks, NV. The new megapack factory will be capable of producing 10,000 Megapacks per year. Elon Musk, Tesla’s Chief Executive announced on Twitter:

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Tesla also has a Gigafactory in Shanghai— also known as Giga Shanghai— that makes the Model 3 and the Model Y. The factory has the capacity to produce up to 750,000 electric vehicles per year.

What is a Megapack?

A Tesla Megapack is a large-scale energy storage system that provides energy storage and support, helping to stabilize the grid and prevent outages. A Megapack unit can store over 3 MWh of energy—that is enough energy to power an average of 3,600 homes for one hour. A megapack is intended for utilities and large-scale commercial applications, and can execute the following tasks:

1.Voltage & Frequency Regulation: Stabilize voltage levels by absorbing reactive power and adjusting output.

2.Renewable Smoothing: Balance the flow of renewables to the grid by storing and discharging energy.

3.Demand Support: Discharge energy during peak demand to support distribution infrastructure.

4.Microgrid: Build a localized grid that can disconnect from the main power grid.

5.Voltage & Frequency Regulation: Stabilize voltage levels by absorbing reactive power and adjusting output.

The future of Megapack factories look promising, as the demand for large-scale energy storage solutions keeps growing. The global advanced energy storage system market size accounted for $19B in 2022 and is estimated to achieve a market size of $48.5B by 2032 growing at a CAGR of 9% from 2023 to 2032.

About the Author(s)

Maria Guerra

Senior Editor-Battery Technology, Informa Markets Engineering

Battery Technology Senior Editor Maria L. Guerra is an electrical engineer with a background in Oil & Gas consulting and experience as a Power/Analog Editor for Electronic Design.  Maria graduated from NYU Tandon School of Engineering with a Master of Science in Electrical Engineering (MSEE). She combines her technical expertise with her knack for writing. 

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