Tesla agrees to build the largest battery power plant in China

Timing Her first deal to build a battery power plant in China was signed amid a tense trade relationship between Beijing and Washington.

The American company published on the Chinese social media service Weibo The project should be larger in China upon completion.

Battle energy storage systems help in the benefit of maintaining the balance of electrical networks and demand. An increased need to fill the mismatch of demand resulting from intermittent energy sources such as solar energy and wind.

Chinese media, Yicai, initially reported that the 4 billion yuan ($ 556 million) deal signed by Tesla, the local government of Shanghai and China’s International Kangngu Finance Company, according to Reuters.

Tesla said that the battery factory in Shanghai has produced more than 100 MPa-battery designed to spread the range-in the first quarter of this year. One megapk can provide up to 1 megawatts of salad for four hours.

“The power plant on the side of the network is a” smart organizer “for urban electricity, which can control the network resources with flexibility,” said Tesla on Weibo, according to Google.

This added the effectiveness of urban energy supplies and ensuring safe, stable and effective demand for electricity in the city.

According to the company’s website, not every megapk was sold for less than one million dollars in the US prices for China is not available.

The deal is important for Tesla, like China Cattle And car maker Byd Competition with similar products. The Chinese companies achieved great success in developing and manufacturing batteries, as the former achieved about 40 % of the global market share.

Catl was also expected to provide battery cells and packages used in Megapacks in Tesla, according to the Reuters news source.

Tesla with the Chinese local authority is also important because it comes after US President Donald Trump slapped the definitions of imports from China, which attracts the geopolitical relationship between the two largest economies in the world.

The CEO of Tesla Elusk was a close ally of President Trump during the initial stages of the trade war, which increased the complexity of business expectations for American auto companies in China.

However, the demand for battery installation in the network scale is important in China. Last May, Beijing set a new goal to add approximately 5 GB of battery -running electricity supplies by the end of 2025, up to the total capacity to 40 GB.

Tesla also exports Megapacks to Europe and Asia from the Shanghai Factory to meet global demand.

The ability of 42 GB World Battery Storage systems increased in 2023, almost doubled the total increase in the capacity that was observed in the previous year, according to the International Energy Agency.

– Arjun Kharpal from CNBC contributed to reporting.