According to Xinhua, there was a signing ceremony for the announcement of the new factory. Construction is expected to begin later this year, and Megapack production is expected to begin in the second quarter of next year. The intention is to produce 10,000 Megapacks a year in Shanghai, where Tesla also has a huge electric car factory.
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The Megapack is an almost shipping container-sized battery system that can be used for wind and solar farms to temporarily store energy. This energy can then be released when demand peaks.
One Megapack can store enough energy to power an average of 3600 homes for one hour. Tesla already has a Megapack factory in Lathrop, California, where 10,000 of these battery systems can be produced annually.