Tesla Signs $560M Deal for First Grid-Scale Power Plant in China

Tesla has signed a $560 million agreement to build its first grid-scale energy storage power plant in mainland China, which is expected to become the largest grid-side energy storage project in the country. This installation aims to help flexibly adjust grid resources and alleviate pressures on urban power supply, enhancing grid stability amid increased integration of solar and wind energy. The project reflects Tesla's growing involvement in China's energy infrastructure, building on its Shanghai manufacturing operations and battery production. The investment deal was finalized between Tesla Shanghai, local Shanghai authorities, and China Kangfu International Leasing Co., despite ongoing US-China trade tensions under President Donald Trump's administration. Large-scale energy storage like Tesla's megapacks, which are already deployed in the US and Australia, is critical for stabilizing renewable-powered grids. This development marks a significant milestone in Tesla's global energy ambitions while highlighting the complex economic relations between the US and China.