Tesla had now stated that it has plans to set up a new plant in Shanghai, China, in order to deal with the increased worldwide demand for large-form-factor batteries even in the wake of the communist nation’s manufacturing sector falling on hard times because of the communist nation’s draconian government lockdowns.
The electric automaker unveiled this past Sunday that this new mega factory to be located in Shanghai will be able to create 10,000 powerful utility-scale energy storage batteries, which the company has come to call Megapacks, per year. Each of these units can store three megawatt-hours of energy– an amount capable of giving power to over 3,600 homes for an hour if an outage should take place.
An announcement from Tesla CEO Elon Musk on social media explained that the mega factory is expected to “supplement output” from a similar facility situated in Lathrop, California, which has the power to create 10,000 units per year as well, equal to 40 gigawatt-hours of energy storage space. Musk paid a visit to Shanghai over this past weekend, meeting with local officials and possibly paying a visit to the existing vehicle assembly plant from the company in the city, according to a recent report issued by Bloomberg.
This expansion out into China took place after the communist nation’s manufacturing sector was stifled with severe disruptions due to the onset of the nation’s extremely draconian government lockdowns and other public health measures, the impacts of which were seen as echoes across the planet via disruptions in the supply chain and increased inflation. American manufacturing orders in China dropped by a staggering 40% near the end of last year, as reported by data sets from the CNBC Supply Chain Heat Map.
A number of prominent American corporations chose to shift their operations to different and building manufacturing economies in response to the lockdowns, choices which has severe impacts on Shanghai and many other high-profile cities for many months with very little warning. A prime example of this was Apple electing to ship the production of their iPad tablets out of Shanghai last summer, while anti-lockdown protests at the world’s largest iPhone manufacturing facility in Zhengzhou pushed the company to speed up these shifts in production to facilities located in both Vietnam and India.
Tesla recently reported its highest quarterly revenues experienced in the history of the company this past year despite the controversy surrounding Musk buying out social media titan Twitter. The firm also announced new intentions to build a pair of factories in Nevada which will increase the manufacturing capacity for battery cells.
