Source: Tesla

Tesla's Shanghai energy storage Megafactory has officially started production, with expectations that its energy business will grow by more than 50% in 2025.

The inauguration ceremony for the factory was held on February 11 at Shanghai Lingang, where the first Megapack, a large-scale commercial energy storage system, successfully rolled off the production line, marking a new stage in Tesla's business in China.

The Shanghai energy storage Megafactory, Tesla's first such project outside the United States, was signed on April 9, 2023, at Shanghai Lingang.

Construction began on May 23, 2024, and the factory was officially completed on December 26, 2024, breaking the previous speed record set by Tesla's Shanghai Gigafactory in 2019.

Covering approximately 200,000 square meters, equivalent to the size of 30 standard football fields, the factory features major manufacturing processes including welding, painting, and assembly, equipped with advanced automation and management systems.

It plans to produce 10,000 units of Tesla's new-generation large-scale commercial energy storage system, Megapack, annually, with a storage capacity of nearly 40 GWh.

This capacity is equivalent to the annual electricity consumption of 13,000 households or 40 medium-sized factories.

If sourced from clean energy, it can reduce at least 20,000 tons of carbon dioxide emissions.

A single Tesla Megapack can store over 3.9 MWh of energy, enough to fully charge 62 Tesla Model 3 rear-wheel drive vehicles from 0 to 100%.

Currently, Tesla's energy products are deployed in over 65 countries and regions worldwide, including the United States, Canada, Australia, the United Kingdom, and Japan.

In 2024, Tesla's energy storage product installations reached 31.4 GWh.

Source: Tesla

In recent years, Tesla's energy storage business has achieved remarkable growth, with global installations continually rising: 6.5 GWh in 2022 (a 64% YoY increase), 14.7 GWh in 2023 (a 125% YoY increase), and 31.4 GWh in 2024 (a 113% YoY increase).

The fourth quarter of 2024 saw record-high installations for Powerwall and Megapack, with a combined energy storage installation of 11.0 GWh and the highest quarterly gross profit in history.

Tesla's Megapack energy storage system is a crucial solution for the global energy transition. As the world accelerates its shift from fossil fuels to renewable energy, issues of intermittency, volatility, and randomness in solar and wind power generation have become apparent. These fluctuations pose significant challenges to grid stability.

Developing an efficient large-scale energy storage system that can store power during surplus periods and release it during peak demand has become essential.

Source: Tesla

Leveraging its extensive experience in battery technology and energy management, Tesla's Megapack provides strong support for the global energy system's transition.

In Tesla's 2024 annual earnings call, Elon Musk stated, "2025 will be a groundbreaking year for Tesla, possibly even more significant than the years when the Roadster and S3XY models were released."

With the start of production at the Shanghai energy storage Megafactory, it is expected that Tesla's energy system installations will grow by at least 50% YoY in 2025.