TECH NEWS – Tesla isn’t just about cars anymore: China has paid Elon Musk’s company a staggering $557 million to build the largest battery project in the nation’s history. As Tesla faces automotive headwinds, Musk is doubling down on energy storage, while China’s demand for batteries keeps climbing with its renewable ambitions.

As renewables play an ever-larger role in the world’s energy grid—and as recent blackouts in Spain and Portugal have shown how fragile things can be—China, the country investing most aggressively in green power, is now taking its next giant leap. No longer content with CATL and BYD’s battery dominance, China has decided it’s time for a Tesla-powered boost.

China Goes All In: Tesla Tapped for Record-Breaking Battery Project

According to Motorpasión, Tesla has secured a 4 billion yuan deal (around $557 million) to build the largest energy storage facility ever connected to China’s grid. The project, using Tesla’s Megapack batteries, is expected to surpass 1 GWh—more than any battery facility operating in the country today.

China’s goal: never repeat the Spanish blackout scenario. With renewables now making up a fast-growing share of the country’s power, massive storage capacity is critical. Storing surplus energy when production outpaces demand, then releasing it when the grid needs a boost, will help stabilize supply. In just one year, China’s renewable share has jumped from 34% to 39%—a massive leap for the world’s biggest power producer.

The Shanghai facility will be one of China’s most ambitious energy projects yet, with a Megapack battery network offering 3.9 MWh of capacity and the ability to deliver about 1 MW of energy for up to four hours until its reserves run dry.

Tesla’s EV business has become increasingly unpredictable, with sales struggling since Musk became embroiled in politics. This new focus on grid storage could provide the company’s next major growth engine in China. It’s hardly Tesla’s first move in this space—the Megapack factory supplying these units has already churned out more than 100 since February.

With CATL and BYD controlling 54% of the global battery market, Tesla is out to prove it can challenge these Asian giants in a market where demand is soaring. And with U.S. legislation now tightening for electric vehicles, Musk’s company will have to fight harder than ever to stay ahead worldwide.

Source: 3djuegos