Tesla signs $557 million deal to build grid-scale energy storage station in Shanghai

Reuters

Tesla has secured a major agreement to build its first grid-scale battery storage station in China, local media outlet Yicai reported Friday.

Key Details:

  • Investment Size: ¥4 billion (approx. $556.8 million)
  • Partners: Tesla Inc., China Kangfu International Leasing Co., and the Shanghai municipal government
  • Technology: The station will use Tesla’s Megapack batteries
  • Location: Shanghai, China
     

The project follows the launch of Tesla’s battery megafactory in Shanghai, which began production of Megapacks in February 2025.

Strategic Significance:

This marks a milestone for Tesla in China's clean energy market, complementing its electric vehicle footprint and aligning with Beijing’s push for renewable energy storage solutions.

Tesla’s Megapacks are large-scale lithium-ion battery systems designed to store renewable energy and stabilize electrical grids — a critical need as China expands its solar and wind power infrastructure.

The project also signals growing US-China collaboration in clean technology despite ongoing geopolitical and trade tensions.

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