Tesla is no longer doing “only cars”: she wins a giant contract to … electrifying China

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Official Chinese flag and Tesla logo

Tesla stands out as an actor of the Chinese electricity network with a giant battery project in Shanghai.

© Shutershock

We know her for her futuristic cars, giant factories and sometimes lunar tweets. But this time, Tesla comes out of the bitumen to lay the foundations of a strategic turn: an investment of $ 557 million, validated by Beijing, to build the largest battery in the country. And maybe the start of something else.

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Tesla obtains 557 million in China to build the largest battery in

On June 20, Tesla formalized the signing of a tripartite partnership with the government of Shanghai and China Kangfu International Leasing Co. to install, in the Lingang district, A Megapack installation of new generation. A leading energy project, entirely funded by Chinese funds.

First Tesla Megapack modules installed in the Shanghai factory, during the official launch in February 2025

Tesla inaugurates its first Megapack factory in China, in Shanghai, in February 2025 – the giant battery project will be fueled by this infrastructure.

© CGTN / Xinhua News Agency – Reproduction supervised by the rights of Chinese press agencies

According to the economic media YICAI Globalclose to the Beijing authorities, this project is “Considered a strategic energy infrastructure by the municipality”. The tone is set: for China, Tesla now goes beyond the simple framework of electric mobility. The company becomes a key supplier of national infrastructure, capable of responding to the immense challenge posed by the intermittent of renewable energies.

In fact, we are talking about a battery power plant here, capable of engulfing and then restoring the equivalent of several hours of solar or wind production. Each Megapack unit exceeds 3.9 MWh of capacity. The version planned in Shanghai? Unpublished. It will be the largest ever installed in the country.

This is no coincidence: Tesla precisely opened its first factory dedicated to Megapacks in Shanghai, in early 2025. The know-how is on site, the ambition too. And China, storage fond to accompany its energy transition, offers the ideal playground.

Behind this project, there is a strategic tilting: Tesla is no longer satisfied to supply individuals with electric cars. It is now positioned as a key actor in the global energy mix. The network, intermittent management, infrastructure: this is where the next round is played out. “This project strengthens our global transition mission to sustainable energy”a spokesperson for the Tesla Energy division said Reuters.

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