Tesla has revealed plans to build its first grid-scale energy storage facility in mainland China, marking a significant step in its expansion into the country’s energy sector.

In an announcement shared on Chinese social media platform Weibo on Friday, Tesla stated that the new project will support more efficient grid management and help ease pressure on urban electricity supplies.

Once completed, the facility is expected to be the largest grid-side energy storage system in China, Tesla added.

These types of storage systems play a key role in stabilizing power grids, especially with the increasing reliance on renewable energy sources like solar and wind.

According to Chinese news outlet Yicai, a signing ceremony was held on Friday involving Tesla Shanghai, local Shanghai authorities, and China Kangfu International Leasing Co.

The agreement reportedly includes a 4 billion yuan (approximately $560 million) investment in the project.

The development comes amid ongoing trade tensions between the U.S. and China. While both countries have yet to finalize a comprehensive trade deal following tariffs imposed during Donald Trump’s presidency, recent talks in London resulted in a preliminary “framework” agreement.

Source: AFP