Tesla has officially opened its Megafactory in Shanghai. The facility is expected to produce 10,000 Megapack units annually, with a total energy storage capacity of 40 gigawatt-hours (GWh).
Construction of the factory began in May 2024 and was completed in December 2024. This is Tesla’s second factory dedicated to Megapack production. The first Megafactory is located in Lathrop, California. Tesla also operates a Gigafactory in Shanghai for electric vehicle production.
Megapacks are large-scale battery storage units designed for grid stabilization and renewable energy integration. They store excess energy from sources like solar and wind and release it when demand is high. The Shanghai Megafactory will supply these units to global markets.
In January 2025, Tesla reported a 67% increase in revenue from energy generation and storage for 2024. The company also projected an increase of at least 50% in energy storage capacity additions for 2025.
Shanghai has been expanding its renewable energy projects. The city is developing offshore wind farms to increase clean energy capacity. The Donghai Bridge Offshore Wind Farm, one of China’s first large-scale offshore wind projects, has an installed capacity of 102 megawatts (MW). The project supplies electricity to Shanghai’s power grid. A new offshore wind farm near Fengxian District is under development, with a planned capacity of 400 MW. The project is designed to support Shanghai’s energy transition by increasing the share of wind power in the grid.
Shanghai is also investing in urban solar energy projects. The Lingang New Area has installed rooftop solar panels on industrial buildings, generating a combined capacity of over 200 MW. The initiative is part of efforts to increase local energy production and reduce dependence on fossil fuels.
Green hydrogen projects are being explored in the city. A pilot plant in Shanghai is testing hydrogen production using renewable electricity. The project aims to evaluate the feasibility of large-scale hydrogen production for industrial use and transportation.
