Tesla has signed an agreement to construct its first grid-scale energy storage power plant in mainland China, marking a significant milestone in the company’s global energy infrastructure ambitions.
The project will help with the flexible adjustment of grid resources, and “effectively solve pressures relating to urban power supply,” Tesla said in a post to the Chinese social media platform Weibo.
“After completion, this project is expected to become the largest grid-side energy storage project in China,” Tesla added.
The announcement came as China ramps up integration of renewable energy sources, such as solar and wind, into its power grid.
Large-scale energy storage systems like the one proposed by Tesla are seen as critical to stabilising electricity supply and ensuring consistent performance of renewable-powered grids.
Chinese financial media outlet Yicai reported that a signing ceremony took place on Friday involving Tesla Shanghai, local Shanghai authorities, and China Kangfu International Leasing Co.
The total investment for the project is estimated at 4bn yuan, equivalent to approximately $560m.
The agreement came amid ongoing tensions in US-China trade relations. Though both nations recently reached a framework agreement in London following extended negotiations, a comprehensive deal has yet to be finalised.
