&#34;Tesla will build its first grid-side energy storage station in China.&#34; Singapore's Business Times reported on the 22nd that the signing ceremony for the Lingang New Area's grid-type zero-carbon energy international cooperation demonstration center project was held in Shanghai Lingang on the 20th. The American technology company Tesla stated on social media that this is its first grid-side energy storage station project in mainland China. Tesla claims that once completed, the project is expected to become the largest grid-side energy storage project in China.
According to information released by the Shanghai Municipal Government, the total investment in this transaction is approximately 4 billion yuan, and it will use Tesla's energy storage product Megapack to construct a gigawatt-hour level grid-side independent energy storage demonstration project. The project implementation entity is Kangyao Energy, a subsidiary of China Kangfu. According to Tesla, &#34;The grid-side energy storage station is the 'smart regulator' of urban electricity, which can flexibly adjust grid resources, effectively solve urban power supply pressure, and ensure the safe, stable, and efficient electricity demand of the city.&#34;
The American CNBC website reported that such battery storage systems help balance electricity supply, and as the supply-demand imbalance caused by intermittent energy sources like solar and wind becomes increasingly prominent, these systems are becoming more and more indispensable. According to reports from the American United Press, similar facilities are currently being promoted in various locations around the world.
According to Tesla's official introduction, Megapack is designed for utility companies and large commercial projects, balancing the delivery of renewable energy to the grid through storage and discharge functions. Each storage unit can store over 3.9 megawatt-hours (1 gigawatt-hour equals 1000 megawatt-hours) of electricity, equivalent to the electricity consumption of 3,600 households for one hour.
In February of this year, Tesla's Shanghai energy storage super factory located in the Lingang New Area officially began production. A month later, the first batch of Megapack energy storage systems produced by the factory set sail for Australia. This energy storage super factory is Tesla's first similar project built outside of the United States. According to a previous report by the American Washington Post, the construction of the factory took only 7 months, and Tesla Vice President Michael Snyder stated at the time, &#34;We once again witnessed the incredible speed of Shanghai and Tesla.&#34; The report cited analysts saying that China's leading position in the global battery industry makes it a &#34;natural choice&#34; for Tesla's expansion.
American CNBC analysis believes that this transaction is significant for Tesla, as Chinese new energy companies such as CATL and BYD are launching similar products. These two Chinese companies have made significant progress in battery research and manufacturing, with CATL holding about 40% of the global market share. Reuters cited sources saying that CATL is also expected to supply battery cells and battery packs for Tesla's Megapack.
Many foreign media believe that this project is quite symbolic under the current Sino-U.S. trade status. After the announcement of the Shanghai energy storage agreement, Tesla's stock price showed a positive trend. In pre-market trading, its stock price rose significantly compared to the previous day's closing price.
American CNBC believes that the signing of this project may accelerate the growth of Tesla's energy business—especially against the backdrop of increasingly fierce competition and price pressure in the core automotive market. &#34;By expanding its influence in the Chinese market through the Shanghai project, Tesla not only has the opportunity to capture a share of the world's fastest-growing energy storage market but can also leverage local manufacturing advantages.&#34;
The &#34;ESG News&#34; website in the United States published an analysis on the 21st, stating that the implementation of this project reflects Tesla's optimism about the Chinese market and will enhance its competitiveness in the energy sector in China.
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Tesla will build its first grid-side energy storage station in China, with an investment of approximately 4 billion yuan. The project is located in the Shanghai Lingang New Area and is expected to become the largest grid-side energy storage project in the country. Tesla's Megapack energy storage products will be used to construct this demonstration project, aimed at intelligently regulating urban electricity and addressing power supply pressure. Such energy storage systems are becoming increasingly important globally, especially against the backdrop of imbalances in renewable energy supply and demand. Tesla's energy storage super factory in Shanghai has already started production this year

- Tesla is set to build its first grid-side energy storage station in China, with a total investment of approximately 4 billion yuan.  
- The project, located in the Lingang New Area of Shanghai, aims to become the largest grid-side energy storage project in the country, utilizing Tesla's Megapack technology.  
- This initiative is significant for Tesla as it expands its influence in the rapidly growing energy storage market amid increasing competition from local companies like CATL and BYD.

Investing 4 billion, Tesla builds energy storage stations in China