Tesla inaugurates megapack battery plant in Shanghai

Tesla has officially launched its new megapack battery manufacturing plant in Shanghai, marked by a ceremony for the land acquisition for the project, according to Chinese state media reports. The facility, capable of producing 10,000 megapacks annually, signifies Tesla's commitment to expanding its production capacity in the electric vehicle (EV) and energy storage sectors.

The construction of the megapack battery plant is scheduled to commence in the first quarter of 2024, with production set to start in the fourth quarter. This timeline indicates a slower-than-expected rollout for the powerful battery project, as Tesla initially announced in April that construction would begin in the third quarter, with production anticipated to start in the second quarter of the following year.

Tesla's gigafactory in Shanghai, which has an annual capacity of 1.1 million units, continues to contribute significantly to the company's EV manufacturing capabilities. However, Tesla has yet to receive regulatory approval for expanding the capacity of EV production in Shanghai, a factor that will likely impact the overall output of electric vehicles from the Shanghai facility.

The megapack battery plant's launch underscores Tesla's strategic focus on advancing battery technologies and energy storage solutions, aligning with its broader goal of promoting sustainable energy solutions and strengthening its position in the global electric vehicle market.

(With Reuters inputs)