On June 20, the Lin-gang Special Area Administration, Fengxian District People’s Government, China Kangfu International Leasing Co., Ltd., and Tesla (Shanghai) Co., Ltd. held a signing ceremony for the International Cooperation Demonstration Center for Grid-Forming Zero-Carbon Energy project.
The signing marks the official launch of a gigawatt-hour level grid-side independent energy storage power station and supporting major projects in Lin-gang Special Area, with a total investment of 4 billion yuan ($557 million).
Implemented by Kangfu subsidiary Kang’ao Energy, the project will invest 4 billion yuan ($557 million) in the Lin-gang Special Area to construct a demonstration grid-side independent energy storage power station using Tesla’s Megapack. This project establishes the foundation for Tesla’s first grid-side energy storage application in Chinese mainland.
Dong Kun, Tesla China Energy Business General Manager, stated that upon operation, the project will participate in local grid peak shaving, frequency regulation, and spot electricity market trading. It will provide flexible regulation resources for the power system, promote renewable energy absorption in Lin-gang Special Area, address Shanghai’s seasonal peak electricity regulation needs, and ensure regional power supply stability.
Tesla’s Megapack features high energy density, integrated system design, modular architecture, efficient energy management, and multi-layer safety protection. It eliminates the need for natural gas peaker plants while preventing blackouts, delivering repeatable, low-risk plug-and-play grid solutions. All systems ship fully assembled and ready for immediate deployment, reducing complexity and enabling rapid installation. With low maintenance costs, a 20-year warranty, and over-the-air software updates, the system continuously optimizes performance.
In February 2025, Tesla’s first overseas energy storage factory—the Shanghai Megafactory—officially commenced production. Public data shows its annual Megapack output will reach 10,000 units, providing nearly 40 GWh of storage capacity. Each Megapack can store approximately 3,900 kWh of electricity—equivalent to the combined battery capacity of 62 rear-wheel-drive Model 3 vehicles.
On March 21, the first batch of Megapack units from Tesla’s Shanghai factory were exported, with hundreds already shipped to multiple countries and regions across Europe and Oceania.
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