New Energy Power Station Battery Energy Storage Rack

Tesla has officially signed a ¥4 billion (C$764/US$557 million) deal to build its first grid-scale battery energy storage station in China, leveraging its Megapack technology.

Tesla's energy expansion in China comes as demand for large-scale battery systems grows. Tesla has signed its first agreement to build a utility-scale battery storage facility in China, marking a major step in the company's global energy ambitions despite ongoing trade tensions between Washington and Beijing.

On March 31, the second phase of the 100 MW/200 MWh energy storage station, a supporting project of the Ningxia Power's East NingxiaComposite Photovoltaic Base Project under CHN Energy, was successfully connected to the grid. This marks the completion and operation of the largest grid-forming energy storage station in China.

The announcement, shared by Tesla on the Chinese social media platform Weibo, revealed that the new project would become China's largest grid-side energy storage installation upon completion.

This marks the completion and operation of the largest grid-forming energy storage station in China. The photo shows the energy storage station supporting the Ningdong Composite Photovoltaic Base Project. This energy storage station is one of the first batch of projects supporting the 100 GW large-scale wind and photovoltaic bases nationwide.

Each Megapack — a large-scale lithium-ion battery designed for utility use — is capable of storing up to 1 megawatt of power for four hours.In the U.S., a single Megapack is priced just under $1 million, though pricing for the Chinese market has not been disclosed.