We typically think of Tesla as the brand that makes some of the most futuristic EVs, but there’s more to this brand than that. Tesla was one of the first companies to produce a charging network for its electric vehicles, and now it’s on the verge of solving some of our future energy issues. The new Tesla Megafactory in China is a step in the right direction.

What will the Tesla Megafactory in China produce?

The new factory is designed to produce 10,000 Tesla Megapack batteries per year. This new factory will supplement the current Megapack factory located in California. These batteries are absolutely necessary for the future of electric vehicles, and Tesla appears to be on the front line, solving the problem before there is one.

“A Tesla Megapack is a very large battery for utilities that stores energy, helps stabilize the power grid and prevents outages. These batteries enable grid operators to move extra capacity between countries or states to ensure power from intermittent sources can be stored and used when demand is higher or when there are unplanned outages in a transmission network.” – CNBC

What is the future EV problem?

Specifically, as we transition away from gas-powered vehicles and begin to adopt more electric cars, SUVs, and trucks, more electric power is necessary to charge the EV batteries. The typical non-peak times of electrical use, the overnight hours when many people are sleeping, could suddenly be the peak times. This is certainly true if every household has an EV plugged in and charging.

Why is it a problem for electric vehicles to draw more energy?

The current power grid isn’t designed to store electricity. Instead, the grid supplies necessary electricity when required in most areas. This is why we have blackouts, brownouts, and times when government officials ask us to use less electricity.

The new Tesla Megapack batteries could solve this problem. CNN Business reported that Tesla claims the massive size of these batteries can store enough energy to power an average of 3,600 homes for one hour.

Why put the new Tesla Megafactory in China?

Over the past few years, the Chinese auto market has become the largest market in the world. Additionally, China has embraced the movement toward electric vehicles and will require supplemental electric power much sooner than any other country, including the United States.

When will Tesla break ground on this new facility?

The new factory will break ground in the third quarter of 2023, and the production of Tesla Megapack battery units will start in the second quarter of 2024. Tela currently operates a Gigafatory in Shanghai that produces up to 22,000 Model 3 cars per week. The company plans to expand this factory to an annual capacity of 450,000 units.

What does this new Tesla factory mean?

The new Tesla Megafactory in China means this company is looking forward to the potential electric grid problems and working to provide solutions that could make the transition to EVs much smoother.