US auto giant Tesla held a ceremony on Tuesday to mark the launch of the production of its Megapack energy storage plant in Shanghai's Lingang New Area,the company told the Global Times on Tuesday,describing the development as a new example of"Tesla speed"in China,following the success of its Gigafactory already in operation in Shanghai.
The energy storage Megafactory is the first of its kind built by Tesla outside the US and the company's second plant in Shanghai.Mass production at the factory commenced just eight months after construction began,serving as a new example of"Tesla speed"in China,Tesla said in a press release sent to the Global Times on Tuesday.
Construction of the Megafactory set a new record that surpassed the"Tesla speed"established by the Tesla Shanghai Gigafactory in 2019,which is known for its"groundbreaking,production and delivery all in the same year,"the press release said.
The Megafactory project broke ground in May 2024 after Tesla's CEO Elon Musk visited China in April 2024 during which he met with Chinese Premier Li Qiang and stressed that"Tesla is willing to deepen cooperation with China and achieve more win-win results."
"The rapid establishment of Tesla's energy storage factory in Shanghai exemplifies the remarkable synergy between the two sides.This serves as a testament to the potential for win-win outcomes through collaboration,highlighting the expansive growth opportunities available in both markets,"Li Yong,a senior research fellow at the China Association of International Trade,told the Global Times on Tuesday.
"Tesla's two major investments in China,both completed at an unprecedented pace,are a quintessential example of a successful China-US cooperation and demonstrate China's efforts to optimize its business environment,"Li Yong said.
The efficiency displayed by Chinese authorities in facilitating these projects underscores their commitment to welcoming foreign investment,Li Yong added.
Mike Snyder,vice president of Energy and Charging at Tesla,said at the ceremony that Tesla's Shanghai energy storage Megafactory is scheduled to ramp up production this quarter,which will assist Tesla to expand into more markets.
The facility is set to produce the company's powerful energy-storage batteries,known as Megapacks,at an impressive initial capacity of 10,000 units per year.
This Megafactory is also set to significantly contribute to Tesla's global energy storage goals.The company anticipates a year-on-year increase of 50 percent in energy storage deployments in 2025,per the press release.
According to a report from the Xinhua News Agency,products from the Tesla energy storage factory will be exported to the global market,including the Asia-Pacific region,providing support for global green development.
Potential for cooperation
The production at Tesla's Shanghai energy storage factory serves as an example of the practical cooperation between China and the US in the global endeavor to combat climate change and accelerate the green,low-carbon transition,Wang Peng,an associate research fellow at the Beijing Academy of Social Sciences,told the Global Times on Tuesday.
It shows that there is huge potential for pragmatic China-US cooperation in the high-tech and clean energy sectors and underscores US companies'long-term commitment to the Chinese market as well as confidence in the market's prospects,Wang said.
China is a major market for energy storage in the world.According to data from the National Energy Administration of China,as of the end of September 2024,the country has successfully built and put into operation new energy storage capacity of 58.52 million kilowatts or 128 million kilowatt-hours,representing an approximate growth of 86 percent compared to the end of 2023,according to Xinhua.
Zhang Xiang,chief energy storage expert at Jiangsu Gufeng Electric Power Technology Co and an expert in the electric vehicle industry,told the Global Times on Tuesday that this collaboration represents a win-win situation for both Tesla and the Chinese market.
"Tesla's battery production in China will lower costs,boost revenue,and expand market share,while attracting capital,creating jobs,and enhancing the local supply chain,"said Zhang.
The production launch of the factory also reflects the optimism of various foreign enterprises,including American companies,regarding China's economic prospects.With its vast market,complete industrial system,and high-quality business environment,China will continue to be a hotbed for global investment,"Bai Ming,a research fellow at the Chinese Academy of International Trade and Economic Cooperation,told the Global Times on Tuesday.
Other US companies are also expanding in China.
Shanghai Disney Resort told the Global Times in January that it had reached another milestone in the development of its third themed hotel.The hotel has completed its structural-phase construction,laying important groundwork for the upcoming interior development.
Last October,Apple CEO Tim Cook also pledged to increase investment in China during his Beijing visit.Cook said Apple is keen to seize the opportunities presented by China's opening up and will continue to increase its investment in the country,thus contributing to the high-quality development of the industrial and supply chains,Xinhua reported.
"The choice of these foreign enterprises to invest in China indicates their opposition to various forms of decoupling,as they seek win-win cooperation with the Chinese market and businesses,"said Bai.
According to a report released by the American Chamber of Commerce in China(AmCham China)in January,nearly half of US companies in China reported profitability in 2024.
China remains a key market,with 48 percent of companies ranking it as a top-three global priority,according to the report.
"A stable and constructive relationship,grounded in economic and trade ties,is critical not only for the prosperity of our two nations but also for global economic stability,"Alvin Liu,chair of AmCham China,said in a release sent to the Global Times.
Commenting on the report,Chinese Foreign Ministry spokesperson Mao Ning said at a regular press conference that the findings show the importance of pursuing a steady,sound and sustainable China-US relationship.We hope the US will work with China and bring China-US relations back onto the track of sound and steady development,said Mao.
