Tesla To Build New Battery Factory In Shanghai After Musk Visit

Tesla said it will build an additional plant in Shanghai, China, to meet worldwide demand for large batteries even after the communist nation’s manufacturing sector took several blows as a result of aggressive government lockdowns.

The different Megafactory in Shanghai, which the company calls Megapacks, will be able to produce 10,000 potent utility-scale energy storage batteries periodically, the electric automaker announced on Sunday. In the event of an interruption, each device can store three megawatt-hours of power, which is enough to power 3,600 homes for an hour.

Elon Musk, the CEO of Tesla, declared on social media that the Megafactory would” supply performance” from a comparable option in Lathrop, California, which may generate 10,000 units annually, or 40 gigawatt-hours of power storage capacity. According to a Bloomberg report, Musk spent the weekend in Shanghai where he met with local authorities and may have even visited the company’s’s current vehicle assembly facility.

The country’s’s manufacturing business was severely disrupted as a result of severe government lockdowns and public health measures, which had an effect on supply chains and worsening inflation all over the world. This led to the expansion into China. According to data from the CNBC Supply Chain Heat Map, American manufacturing orders from China had decreased by as much as 40 % at the end of next year.

In response to the shutdowns, which abruptly closed Shanghai and other well-known cities for decades, eminent British businesses relocated their services to developing production economies. In response to anti-lockdown demonstrations at the largest phone manufacturing facility in the world, Zhengzhou, Apple moved some iPad production out of Shanghai last summer. As a result, the company accelerated supply shifts to countries like India and Vietnam.

Despite his commitment to increase operations in China, Musk emerged as a leading opponent of quarantine orders. As lockdowns in California prevented Tesla facilities from being reopened in the spring of 2020, the world’s’s richest man grew increasingly irritated, referring to the situation as” the final straw” and moving the automakers’ corporate headquarters to Texas.

According to World Bank data, China’s’s gross domestic product has grown at an average annual rate of 9 % since the nation opened its economy and underwent economic reform more than 40 years ago, enabling over 800 million people to live in poverty. According to information from consulting company INS Global, higher levels of happiness and an increasingly sophisticated market, on the other hand, have resulted in a rapid increase in Chinese compensation to the point where British businesses are increasingly likely to maintain operations in the United States, Canada, or Mexico.

Worse trade relations with the United States have also been exacerbated by political conflicts over a potential Chinese invasion of Taiwan and alleged espionage by Chinese technology providers. Senior Biden administration officials are moving to forbid British businesses from funding Chinese companies that are working on sensitive systems like complex electronics, quantum computing, and artificial intelligence.

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Despite controversy surrounding Musk’s’s current acquisition of the social media platform Twitter, Tesla reported the highest monthly income seen in company history last summer. Tesla has also continued to grow operations across the US. The company announced plans to build two new companies in Nevada to boost power cell manufacturing capacity and create a new technology hub in California.