Shanghai: U.S. carmaker Tesla has signed an agreement with Chinese partners to construct a grid-side energy storage station in Shanghai, employing its Megapack energy-storage batteries. The initiative represents a significant investment of 4 billion yuan (approximately 556 million U.S. dollars) and marks Tesla’s strategic expansion into China’s rapidly growing energy storage sector. This development is poised to facilitate the connection of Tesla’s facility with China’s extensive power grid, recognized as the largest in the world.
According to Namibia Press Agency, the energy storage station will be of gigawatt-hour scale and is to be situated in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone. The agreement was signed by Tesla alongside the administrative committee of the Lin-gang Special Area, the people’s government of Shanghai’s Fengxian District, and China Kangfu International Leasing Co., Ltd. This project will be Tesla’s inaugural grid-side energy storage station on the Chinese
mainland.
Dong Kun, the general manager of Tesla China’s energy business, highlighted that once operational, the station will engage in electricity spot trading. This involvement will aid in balancing peak and off-peak power demands within local grids, thereby enhancing overall grid stability. Furthermore, Tesla is poised to strengthen its collaboration with China Kangfu to promote its zero-carbon energy solutions on a global scale.
In February, Tesla’s new Megafactory in the Lin-gang Special Area commenced production of Megapack batteries. This facility is Tesla’s second plant in Shanghai, following the establishment of the Gigafactory. Tesla projects a 50 percent year-on-year increase in energy storage deployments by 2025.