Tesla to Build China’s Largest Energy Storage Plant with $560 Million Investment

Tesla announced the signing of a contract to build China’s first large-scale energy storage plant, marking a new expansion for the company despite trade tensions between Washington and Beijing.

Tesla stated on the Chinese Weibo platform that the 4 billion yuan ($560 million) project will be the largest of its kind in China and will contribute to improving the stability of the electricity grid and easing supply pressures in urban areas.

The project is the result of a partnership between Tesla Shanghai, China Kangfu International Leasing, and the Shanghai city authorities, where Tesla already has a factory producing electric vehicles and Megapack storage units, of which it exported more than 100 to Europe in the first quarter of 2025.

The Megapack units have a storage capacity of up to 3.9 megawatt-hours per unit, enough to cover the consumption of 3,600 homes for an hour, and can be connected to an unlimited number of other units. Tesla has installed similar units in several locations around the world, with a total capacity of more than 10 gigawatt-hours.