Tesla unit seen lifting energy storage sector

Experts: $200m venture will elevate resilience, stability of local industries

Shanghai luminaries have expressed hopes that Tesla's Megapack energy storage plant in Shanghai, for which the US electric carmaker broke ground at the Lin-gang Special Area on Thursday, will serve as an icon for the region's enterprises and help foster an industrial cluster centered around energy storage.

Tesla's Megapack plant will be the first such facility outside the United States that will entail an investment of 1.45 billion yuan ($200 million).

Covering some 200,000 square meters, the new energy storage project is expected to enter mass production in the first quarter of 2025. This will supplement Tesla's California-based Megapack factory, which has an annual capacity of 10,000 units.