Agency Of Income
  • World News
  • Stocks
  • Business
  • Politics

Agency Of Income

  • World News
  • Stocks
  • Business
  • Politics
Business

Tesla agrees to first deal to build China’s largest grid-scale battery power plant

by admin June 21, 2025
June 21, 2025
Tesla agrees to first deal to build China’s largest grid-scale battery power plant

Tesla has inked its first deal to build a grid-scale battery power plant in China amid a strained trading relationship between Beijing and Washington.

The U.S. company posted on the Chinese social media service Weibo that the project would be the largest of its kind in China when completed.

Utility-scale battery energy storage systems help electricity grids keep supply and demand in balance. They are increasingly needed to bridge the supply-demand mismatch caused by intermittent energy sources such as solar and wind.

Chinese media outlet Yicai first reported that the deal, worth 4 billion yuan ($556 million), had been signed by Tesla, the local government of Shanghai and financing firm China Kangfu International Leasing, according to the Reuters news agency.

Tesla said its battery factory in Shanghai had produced more than 100 Megapacks — the battery designed for utility-scale deployment — in the first quarter of this year. One Megapack can provide up to 1 megawatt of power for four hours.

“The grid-side energy storage power station is a ‘smart regulator’ for urban electricity, which can flexibly adjust grid resources,” Tesla said on Weibo, according to a Google translation.

This would “effectively solve the pressure of urban power supply and ensure the safe, stable and efficient electricity demand of the city,” it added. “After completion, this project is expected to become the largest grid-side energy storage project in China.”

According to the company’s website, each Megapack retails for just under $1 million in the U.S. Pricing for China was unavailable.

The deal is significant for Tesla, as China’s CATL and carmaker BYD compete with similar products. The two Chinese companies have made significant inroads in battery development and manufacturing, with the former holding about 40% of the global market share.

CATL was also expected to supply battery cells and packs that are used in Tesla’s Megapacks, according to a Reuters news source.

Tesla’s deal with a Chinese local authority is also significant as it comes after U.S. President Donald Trump slapped tariffs on imports from China, straining the geopolitical relationship between the world’s two largest economies.

Tesla Chief Executive Elon Musk was also a close ally of President Trump during the initial stages of the trade war, further complicating the business outlook for U.S. automakers in China.

The demand for grid-scale battery installation, however, is significant in China. In May last year, Beijing set a new target to add nearly 5 gigawatts of battery-powered electricity supply by the end of 2025, bringing the total capacity to 40 gigawatts.

Tesla has also been exporting its Megapacks to Europe and Asia from its Shanghai plant to meet global demand.

Capacity for global battery energy storage systems rose 42 gigawatts in 2023, nearly doubling the total increase in capacity observed in the previous year, according to the International Energy Agency.

— CNBC’s Arjun Kharpal contributed reporting.

This post appeared first on NBC NEWS

previous post
Four plead guilty in massive bribery scheme at agency Democrats fought to protect from DOGE
next post
RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

Related Posts

Orange juice importer says Brazil tariffs will squeeze...

July 22, 2025

Bumble shares jump 26% as dating company plans...

June 26, 2025

McDonald’s Snack Wrap is officially returning. Here’s when.

June 3, 2025

Ontario cancels internet deal with Musk’s Starlink as...

July 31, 2025

Walmart to pay $10 million to settle lawsuit...

June 23, 2025

Shein and Temu see U.S. demand plunge as...

June 5, 2025

Tariffs and weaker beer demand are weighing on...

July 3, 2025

Oil prices rise more than 1% as Israel...

June 20, 2025

Trump implies government could cut contracts and subsidies...

June 7, 2025

How Fanatics is teaching business acumen to pro...

June 24, 2025

    Get free access to all of the retirement secrets and income strategies from our experts!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Trump endorses ‘MAGA warrior’ for RNC chairman after Whatley launches Senate campaign

    • WATCH: Trump says he is hopeful Hillary Clinton will be investigated for election fraud

    • Trump moves nuclear submarines weeks after praising sub’s power in Iran strikes

    • Recess on ice as Republicans hunker down for high-stakes nominee blitz

    • Iran says it has ‘plenty of scientists’ left to restart uranium enrichment, despite US, Israeli strikes

    • Apple crushes Wall Street expectations as iPhone sales soar

    Categories

    • Business (95)
    • Politics (20)
    • Stocks (112)
    • World News (293)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: AgencyOfIncome.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 agencyofincome.com | All Rights Reserved