Tesla revealed on Friday that it has reached a deal to construct its first large-scale energy storage facility in mainland China, marking a significant step in its global energy expansion.
In a post shared on the Chinese social media platform Weibo, Tesla stated that the project will allow for more flexible management of grid resources, helping to ease strain on urban power supplies. Once completed, the facility is set to become China’s largest grid-connected energy storage plant, according to the company.
These types of storage systems are increasingly vital for maintaining grid stability, particularly as renewable energy sources such as solar and wind continue to expand, often producing power intermittently.
According to Chinese financial news outlet Yicai, a signing ceremony for the agreement took place Friday involving Tesla Shanghai, local government officials from Shanghai, and China Kangfu International Leasing Co. The report said the project represents an investment of around 4 billion yuan, equivalent to $560 million.
The announcement comes amid ongoing trade tensions between Beijing and Washington. While a lasting trade deal remains elusive following tariffs imposed during Donald Trump’s presidency, the two countries recently reached a provisional framework agreement during two days of high-level negotiations in London earlier this month.
