- Home
- OFweek News
- Tesla's Inaugural Grid-Scale Energy Storage Project in Mainland China Kicks Off in Shanghai
韩前总统李明博被批捕 或面临至多45年监禁
Published: June 25, 2025 17:29
Shenzhen, China – Tesla is making a significant stride into mainland China's grid-scale energy storage market with a landmark Gigafactory-scale project in Shanghai's Lin-gang Special Area. The initiative, valued at RMB 4 billion (approximately $550 million USD), will utilize Tesla's Megapack energy storage products to establish a grid-connected independent energy storage power station demonstration project.
This pivotal development follows a recent agreement signed by Tesla (Shanghai) Co. Ltd., the Lin-gang Special Area Administrative Committee, the Shanghai Fengxian District People's Government, and China Kangfu International Leasing Co. Ltd. (China Kangfu). The collaboration aims to jointly build a grid-forming, zero-carbon energy demonstration center within Lin-gang.
source: Tesla China
Li Jianhua, President of China Kangfu, underscored the strategic rationale behind selecting Megapack, citing its "advanced technology, reliability, and synergy with the broader Tesla energy ecosystem." This synergistic potential has been vividly demonstrated in projects like the Victoria Big Battery in Australia, where a 212-Megapack energy storage matrix can power a million homes.
As one of the global leaders in energy storage, Tesla's presence in China's burgeoning market has been closely watched. Since the first Megapack unit rolled off the assembly line in February this year, Tesla has been quietly expanding its Megapack applications within Lin-gang.
In early June, Greentown Company, a subsidiary of Lin-gang Group, announced the construction of Shanghai's first large-scale industrial and commercial solar-plus-storage microgrid project within the Tesla factory premises. This project will feature a 6-megawatt photovoltaic system paired with an 8-megawatt-hour energy storage system, exclusively utilizing domestically produced Megapacks.
The recently signed grid-scale energy storage project represents an even larger undertaking. Once operational, this demonstration project is expected to participate in local grid peak shaving, frequency regulation, and spot market trading. It will provide crucial flexible regulation resources to the power system, facilitate the integration of new energy sources in the Lin-gang area, address Shanghai's annual summer and winter peak demand challenges, and enhance the stability and security of regional power supply.
China Kangfu, established in June 1988 with approval from the Ministry of Foreign Economic Relations and Trade, serves as the project's implementing entity. The company listed on China's National Equities Exchange and Quotations (NEEQ) in 2015, attracting prominent investors including Morgan Stanley and other domestic and international institutional investors. China Kangfu is committed to becoming a leading financial services provider for clean energy investment and operations.
The Lin-gang Special Area Administrative Committee, a key orchestrator and participant in the project, harbors ambitious plans for energy storage beyond this initiative. According to the committee's planning documents, the Tesla project is a critical component in Lin-gang's strategy to become a global energy storage hub. The "Implementation Plan for Promoting New Energy Storage Demonstration Applications and Leading Industrial Innovation and Development in China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area" explicitly outlines the following targets:
· By 2025, achieve an energy storage application scale of 50 MWh and an industry scale of RMB 50 billion.
· By 2030, expand the application scale to 300 MWh, with the industry scale exceeding RMB 100 billion.
Currently, Lin-gang boasts a concentration of over 20 energy storage enterprises, forming a complete industrial chain spanning from cell materials and key equipment to system integration. Kang'ao Energy, the implementing entity for this RMB 4 billion project, plans to leverage the demonstration project as a base to attract high-value-added supporting industries, ultimately creating an internationally competitive industrial park encompassing "R&D and design, high-end manufacturing, and system integration."
The synergistic effects of this industrial ecosystem are already evident. The establishment of the Tesla factory has accelerated the influx of energy storage talent and technology into Lin-gang, while the maturation of the local supply chain has simultaneously contributed to a reduction in Megapack's production costs.