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The purpose of megapacks is to assist with energy grid stabilization. According to the business, each unit has an average energy storage capacity of 3,600 households’ worth of power for an hour. Utility companies and power plants are intended to use them.
The $200 million investment highlights the US automaker’s commitment to China, the largest EV market in the world and Tesla’s main vehicle export center, at a time when tensions between Beijing and Washington are increasing over geopolitics and trade barriers.
“For Tesla, it’s an important milestone,” according to Tesla senior vice president Tom Zhu, according to a story that aired on the Shanghai government website on Friday.
increasing hostilities
For the most part, Tesla’s commercial dealings with China are going more smoothly than those of other Western corporations.
Shanghai said on Friday that the agreement to establish the facility on the property next to Tesla’s Giga-factory was reached and signed in just one month by both parties. When the company constructed its first factory in 2019, it was able to act with a similar level of speed.
During the starting ceremony on Thursday, Wu Xiaohua, a representative of the Shanghai government, stated that the city will help Tesla complete the construction and start up the factory “as soon as this year.”
Musk visited late last month and had a meeting with Premier Li Qiang of China. As a “successful model” for US-China cooperation, Li commended Tesla.
Beijing has been working harder to support a low-carbon economy and combat an economic downturn brought on by real estate by accelerating the manufacturing of EVs. However, Beijing is also pushing firms to look for fresh development prospects in foreign markets as home demand declines.
