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Tesla’s 40 GWh Megafactory in Lathrop is quickly ramping up production


Last week, in its Q4 2022 financial report, Tesla, Inc. (TSLA) revealed that the production capacity of its newly built Megafactory in Lathrop, California is 40 Gigawatt-hours a year.

Tesla’s Q4 and full-year 2022 update document and the company’s official tweet say that the Lathrop Megafactory is constantly ramping up production of its Megapack battery energy storage system (BESS).

Tesla acquired around 3 acres (1 million sq ft) of land for the Lathrop Megafactory in 2021. Tesla Energy broke ground for this Megapack production facility in September 2021 and the Mayor of Lathrop Sohni Dhaliwal addressed guests and Tesla employees at the occasion.

Tesla produced 2.5 GWh of energy storage at the Megafactory Lathrop in Q4 2022 alone which is more than 40% of the total production of 6.5 GWh in the entire year 2022. According to Tesla, its energy storage deployment grew by 152% in Q4 2022 compared to the same quarter last year.

Energy storage deployments increased by 152% YoY to 2.5 GWh in Q4, for a total deployment of 6.5 GWh in 2022—by far the highest level we have achieved.

We’re ramping production at our dedicated 40 GWh Megafactory in Lathrop, CA to address growing demand.

A Tesla Megapack battery module at the company’s Megafactory in Lathrop, California. Credit: Courtesy of Tesla, Inc. (TSLA).

Let’s do a little Math to see how many cars can be produced with 40 GWh of battery production. 1 Gigawatt-hours (GWh) equals to 1 million kilowatt-hours (kWH) which is enough to produce around 15,000 Model Y or Model 3 cars. So, if we multiply 15,000 x 40 — we get 600,000 Model 3/Y electric vehicles from the battery production capacity of the Tesla Lathrop Megafactory.

But Tesla’s Megafactory Lathrop is dedicated to producing battery packs and entire Megapacks for energy storage systems. It is amazing to see that Tesla’s first Megafactory in Lathrop took only 1 year from groundbreaking to starting production of Megapacks.

“The energy business had its strongest year yet across all metrics led by steady improvement in both retail and commercial storage,” Tesla’s Director of Investor Relations said during the company’s Q4 2022 earnings call.

Tesla’s Battery Energy Storage System (BESS) deployment graph from 0 GWh in 2015 to 6.5 GWh in 2022. Credit: Tesla, Inc. (TSLA).

“While much work remains to grow this business and improve costs we believe we are on a good trajectory,” Martin added.

Tesla has multiple energy storage deployment projects going on in the US and abroad. Just last year, Tesla Megapacks helped Hawaii get rid of coal-powered electricity.

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By Iqtidar Ali

Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii

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