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$556 million

Tesla strikes $556m deal for China's largest grid battery plant

SUMMARY

Tesla has signed a $556 million deal to build China's largest grid battery plant, enhancing its global energy strategy amid U.S.-China trade tensions. The agreement, announced on social media, is with the Shanghai municipal government and a leasing firm. The facility aims to stabilize urban electricity demand and will utilize Tesla's Megapack systems.

This agreement marks a move into a growing market for grid-scale battery projects in China. There is increasing demand for battery storage, spurred by the government's new targets. Tesla faces competition from leading Chinese battery manufacturers like CATL, which holds a significant market share.


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