- Tesla to invest $560M in its first grid-scale energy project in China.
- The facility aims to ease urban power supply pressures and store renewables.
- Project signed amid ongoing US-China trade tensions.
Tesla has finalized a deal to build its first grid-scale energy storage facility in mainland China, representing an important milestone in the company’s worldwide energy infrastructure goals.
The initiative will assist in the adaptable modification of grid resources, and “effectively solve pressures relating to urban power supply,” Tesla stated in a message to the Chinese social media site Weibo.
“After completion, this project is expected to become the largest grid-side energy storage project in China,” Tesla added.
The announcement was made as China strengthens the incorporation of renewable energy sources such as solar and wind into its electrical grid.
Extensive energy storage solutions, such as those suggested by Tesla, are regarded as essential for stabilizing the electricity supply and guaranteeing reliable operation of grids powered by renewable sources.
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Yicai, a Chinese financial media outlet, reported that on Friday, a signing ceremony was held with Tesla Shanghai, local Shanghai officials, and China Kangfu International Leasing Co.
The project's overall investment is projected to be 4 billion yuan, which is around $560 million.
The agreement was made amid ongoing tensions in trade relations between the US and China. Despite both nations recently reaching a framework agreement in London after extended negotiations, a finalized deal has not yet been completed.