Tesla's 2nd Megapack Factory in China
Tesla is building a 2nd Megapack factory in China as Tesla officially signs a deal to build this enormous 40 GWh factory, and this is good news for anyone paying close attention to the growth of Tesla's energy business. We know that Elon Musk has said that Tesla Energy is going to surpass the auto business one day. The auto business will be worth trillions one day - what does this mean for the energy business?
The first Megapack deliveries from this factory are expected to start in late 2024. There will most likely be a ramp, just like the Lathrop, California, factory, until the factory reaches its capacity limit of 40 GWh.
This information comes after an announcement was made with Tom Zhu, SVP of Tesla's automotive business, Wang Hao, general manager of Tesla China, and Tao Lin, VP of Tesla attended the signing event.
Tesla's Megapack product has been getting a little more attention lately, as I think more people are starting to realize that Elon Musk was serious when he said that the Energy Business will outgrow the auto business.
The reason I think he said that is that you have planet earth and over 7 billion people that need energy and energy storage. Not every one of those people will need a car. It's just a larger market, and I believe most utility companies are going to use the Megapack just on the principal alone that they can store energy from off-peak hours at low cost and sell energy during peak hours at a higher cost. If that's all the Megapack could do, that would be enough to be a bestseller in energy.
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At Least 8 More Megapack Factories Are Coming
Pay very close to the statement Elon Musk made about Tesla Energy eventually being bigger than the auto business. I can't stress the importance of this statement enough. There is no reason to believe that Tesla is not going to build more Megapack factories in the future.
I believe, and I think I'm being conservative here, that Tesla will eventually build 8 more of these Megapack factories, in locations where there are already Giga factories for cars. Eventually, Tesla will start to build these in new locations and here's where I think 8 more are going to be:
* Another location in China
* South Korea
* South America (Mexico)
These won't be the only locations. I could see Tesla building up to 20 of these factories, but that starts to get too far into the future, and I'm not sure what the locations would be after these. I just see that they are coming, and Tesla will keep building Megapack factories until it has covered the globe with Megapacks.
At some point, mining for batteries will no longer be needed as much and recycling will be the primary way that batteries are reused. This will be an important milestone in sustainable energy, as it will substantially lower the price of batteries and energy. Look for that to happen in about 20 years.
Do you think Tesla will build more than 8 more Megapack factories? Where will Tesla build them?
In Related News: Production Beta View of Tesla's Cybertruck
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.