Energy storage battery in shengri business park

Is Tesla building a battery plant in Shanghai?

(AP Photo/David Zalubowski, File) BEIJING (AP) — Electric vehicle maker Tesla has begun construction of a factory in Shanghai to make its Megapack energy storage batteries, Chinese state media reported Thursday. The $200 million plant in Shanghai’s Lingang pilot free trade zone will be the first Tesla battery plant outside the United States.

Is Tesla building a Megapack battery factory in Shanghai?

FILE - A Model X sports-utility vehicle sits outside a Tesla store in Littleton, Colo., June 18, 2023. Electric vehicle maker Tesla has begun construction of a factory in Shanghai to make its Megapack energy storage batteries, Chinese state media reported Thursday, May 23, 2024. (AP Photo/David Zalubowski, File)

Is China a major market for energy storage?

China is by far the world leader in installing wind and solar capacity, making it a major market for energy storage. Chinese state media have reported that electric vehicle maker Tesla has begun construction of a factory in Shanghai to make its Megapack energy storage batteries.

Can energy storage be used in Shanghai?

Normally, energy storage can be divided into two segments. The first is utility-scale storage, also known as grid storage, which is built alongside wind and solar farms, typically in remote areas. This is unlikely to have a major application in Shanghai.

Is China a leader in battery energy storage?

China has been an undisputed leader in the battery energy storage system deployment by a far margin. The nation more than quadrupled its battery fleet last year, which helped it surpass its 2025 target of 30 GW of operational capacity two years early.

Are battery energy storage systems a viable option?

The renewables growth is posing growing challenges to the grid, and some provincial governments have already upped their mandatory ratios for energy storage projects to 20%, up from 10% a couple of years ago. However, as the electricity market continues to evolve, standalone battery energy storage systems are emerging as the preferred option.