Tesla Shanghai Megafactory Powers Up Ahead Of Q1 2025 Megapack Production

Tesla has officially commenced trial production at its new Shanghai Megafactory, marking a significant milestone in the company’s expansion into energy storage solutions.

According to an initial report by CarNewsChina, the state-of-the-art facility is dedicated to manufacturing Megapack energy storage batteries, with mass production scheduled to begin in the first quarter of 2025.

Located near Tesla’s existing vehicle Gigafactory in Lingang, this plant is Tesla’s first energy storage facility outside the United States. Construction began in May and was completed in just seven months, underscoring Tesla’s rapid project execution.

Spanning 200,000 square meters, the facility was built with an investment of approximately RMB 1.45 billion (RM890 million). It is designed to produce up to 10,000 Megapack units annually, equivalent to 40 GWh of energy storage. Each Megapack unit can store over 3 MWh of energy—enough to power about 3,600 homes for an hour.

While production will primarily cater to the domestic Chinese market, Tesla plans to export units globally, leveraging Shanghai’s strategic location and manufacturing efficiency. The company has already secured its first orders from the Shanghai Lingang Economic Development Group.

Tesla’s Megapack production will rely on a diversified supply chain, with CATL serving as its primary battery cell supplier in China. Additionally, Tesla previously announced a partnership with FinDreams, BYD’s battery manufacturing unit, to supply additional battery cells starting in early 2025.

Earlier this week, we reported speculation that EVE Energy’s new manufacturing facility in Padang Meha, Kedah, may supply lithium batteries to Tesla’s Shanghai Megafactory.

Tesla’s energy storage lineup—including the Powerwall, Powerpack, and Megapack—is central to the company’s mission to accelerate the global transition to sustainable energy. With trial production now underway, Tesla’s second major facility in Shanghai is set to bolster its influence in the global energy storage market.