Tesla Megafactory construction plan receives approval

Tesla’s Megafactory construction plan has received approval from the Office of the Management Committee in Lingang New Area, China Pilot Free Trade Zone. The factory is set to be located in Nanhui New Town, Pudong New Area, covering an area of 204,359.92 square meters.

Lu Yu, the Director of the high-tech Department of the Administration Committee of Lingang New Area, has stated that the Megafactory in China is expected to complete trial production in 2024, with a production capacity of 40 GWh. It’s planned that Megapacks produced in China will be sold in global markets.

Preliminary preparations for Tesla’s Megafactory site in China began in March, with construction expected to commence this month – a little over a year since the project was first announced. In April 2023, Tesla announced plans to produce 10,000 Megapacks per year in China, aiming to start deliveries from the Megafactory by Q1 2025.

The Megafactory in China is anticipated to help Tesla reduce costs in high-demand markets such as Australia. Such a move would lead to the significant expansion of the Collie Battery, making it the largest in Australia.

Musk, during a call, highlighted the surge in the demand for Megapacks and the record profitability for the energy business in Q1.

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