Shanghai (ZXZC)- On May 23, Tesla officially broke ground on its Shanghai Megafactory in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, according to a report from Xinhua news agency. This is Tesla's first Megafactory project outside of the United States, marking what the company describes as a "new chapter in China."

Photo credit: Official WeChat account of  Administration of China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area

In its initial phase, the project plans to produce 10,000 units of large-scale commercial energy storage systems (namely, Megapack) annually, with a storage capacity of nearly 40 GWh. Mass production is expected to begin in the first quarter of 2025.

Following the groundbreaking ceremony, Lingang Group and Tesla signed an agreement for China's first order of Tesla Megapack.

During a recent visit to China, Tesla CEO Elon Musk expressed a desire for deeper cooperation with China to achieve more mutually beneficial outcomes.

According to the Administration of China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area, the Tesla Shanghai Megafactory will cover an area of approximately 200,000 square meters with a total investment of about 1.45 billion RMB. Ms. Tao Lin, Vice President of Tesla, stated, "The importance of the energy storage business to Tesla is now on par with its well-known electric vehicles."

The Shanghai Megafactory plans to export products to overseas markets, including the Asia-Pacific region, contributing to a global "green future." Currently, Tesla's energy storage products are sold in over 65 countries and regions worldwide.

The Tesla Shanghai Gigafactory, completed in 2019, is widely regarded as a model of Sino-American industrial and technological cooperation.

Ms. Tao Lin said China not only has a complete industrial system, broad market prospects, and a resilient economy but also provides a high-quality business environment that is crucial for enterprises.