Shulou(Shulou.com)11/24 Report--

Beijing, April 10 (Xinhua)-- Tesla announced last weekend that it will build a new large battery factory in Shanghai. Us media pointed out that the new plant will further consolidate China's position at the top of the global energy storage supply chain.

▲ Tesla Shanghai Battery Factory Roadmap Tesla will produce its super-large energy storage commercial battery Megapack in this new plant, another Tesla production facility in addition to the Shanghai electric vehicle assembly plant. Tesla made the announcement at a project signing ceremony in Shanghai on Sunday, after the company's CEO, Elon Musk, reportedly visited China this weekend. Zhu Xiaotong, senior vice president of Tesla's automobile business, Wu Qing, vice mayor of Shanghai, and other government officials attended the signing ceremony. Tao Lin, vice president of Tesla, signed the contract.

Musk tweeted that the new Shanghai plant is a complement to the capacity of the Megapack plant in Tesla, California. Construction of the new plant will start in the third quarter of this year and start production in the second quarter of next year, Tesla said.

China has the largest energy storage capacity in the world. China already has more than 1400 gigawatt hours of battery manufacturing capacity, and another 6000 gigawatt hours of battery capacity is under construction or has been announced. The United States ranks second in installed capacity, about 1000 gigawatt hours, but most of it has not yet been built.

Unlike most battery production, which mainly flows to the electric car market, the Megapack plant will produce batteries for grid-level energy storage, a much smaller area. According to the International Energy Agency, by the end of 2020, the installed capacity of fixed energy storage batteries was about 19.3 gigawatt hours. By 2026, this number is likely to grow to more than 150 gigawatt hours.

▲ Musk says the new plant complements U. S. capacity, but Musk has a much bigger vision for the energy storage industry. He hopes that the combination of energy storage and renewable energy will play an important role in power decarbonization and green industry. Tesla's "secret grand plan" predicts that about 46200 gigawatt-hours of fixed energy storage batteries will need to be installed over the next 20 years.

Megapack's goal is to act as a giant battery to help stabilize the energy network. Tesla said that each Megapack unit can store 3MWh energy, enough to meet the average electricity needs of 3600 households for an hour. The new plant in Shanghai will initially produce 10, 000 Megapack batteries a year, equivalent to about 40 gigawatt hours of energy storage, which will be sold worldwide.

The news of Tesla's new battery factory in China does not seem to have much impact on the Ningde era, the world's largest electric car battery maker and Tesla supplier. The stock price of the Ningde era fluctuated very little in Monday morning trading.

The importance of China to Tesla China is an extremely important market for Tesla. At the same time, China is also home to BYD, another global electric car giant. Tesla has built a wholly owned car factory on the outskirts of Shanghai, producing nearly 711000 cars last year, accounting for 52 per cent of its global output.

In early 2019, Tesla built his first factory outside the United States in Shanghai with the assistance of Chinese authorities. During the COVID-19 epidemic, the Shanghai municipal government helped Tesla resume production in a timely manner. However, Tesla's development in China has not been smooth, and the company's price cuts in China have caused dissatisfaction among car owners. In addition, the expansion of Tesla's Shanghai factory has also been delayed.

'China is the most competitive car market, 'Mr. Musk said on an earnings call in January. He has made similar comments before, including in an online forum in September 2021. He said at the time that he had "great respect for many Chinese automakers".

In addition to Tesla, other international brands have also doubled their bets in China. France's Airbus recently announced plans to double the production capacity of one of its best-selling models in China. Under an agreement signed by Airbus CEO Guillaume Guillaume Faury in Beijing last week, the European aircraft maker will add a second A320 narrow-body assembly line to its existing plant in Tianjin.

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