Tesla agreed to build a massive battery storage system in China for $556.8 million. The electric car company signed the deal with China Kangfu International Leasing and Shanghai government officials on Friday. The project will create Tesla's first major battery storage facility in mainland China.
Tesla announced the news on Weibo and called the system a smart regulator for city electricity. The battery station will help balance power supply and demand across the electrical grid. Tesla expects this project to become China's largest grid-side energy storage system when workers finish building it.
The company beat out two Chinese rivals to win the contract. CATL and BYD both make similar battery storage products and control large parts of the global market. Tesla had to compete directly against these local companies for the business opportunity.
China wants to add almost 5 gigawatts of battery-powered electricity capacity before 2025 ends. This expansion would bring the country's total battery storage capacity up to 40 gigawatts. Utility companies around the world are building more battery systems to help manage their power grids better.
Tesla announced the news on Weibo and called the system a smart regulator for city electricity. The battery station will help balance power supply and demand across the electrical grid. Tesla expects this project to become China's largest grid-side energy storage system when workers finish building it.
The company beat out two Chinese rivals to win the contract. CATL and BYD both make similar battery storage products and control large parts of the global market. Tesla had to compete directly against these local companies for the business opportunity.
China wants to add almost 5 gigawatts of battery-powered electricity capacity before 2025 ends. This expansion would bring the country's total battery storage capacity up to 40 gigawatts. Utility companies around the world are building more battery systems to help manage their power grids better.
