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Tesla opens new possibilities for Giga Nevada, halts Megapack production

Credit: Todd Rodgers, Linkedin

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Tesla has stopped Megapack production at Giga Nevada, but this is just the beginning for Tesla’s most underrated facility.

Tesla Giga Nevada has never been the most well-known or talked about gigafactory in the Tesla fleet, despite its incredible contributions to Tesla’s Energy division and, more recently, to the production of the Tesla Semi. Now, the Nevada plant is being dramatically shaken up, potentially for the better, as it will no longer be producing the Megapack.

The announcement of the final Megapack leaving Giga Nevada was posted to Linkedin by a Tesla production technician and was subsequently published on Twitter by Sawyer Merrit. The post is far from lengthy and only shows a single picture of the final Megapack leaving the facility.

In terms of Megapack production, at least for now, this halt at Giga Nevada will shift all focus to Tesla’s new facility in Lathrop, California, which is quickly becoming one of Tesla’s fastest-growing production locations in the United States. Meanwhile, Tesla is already working to establish its second Megapack production facility based in Shanghai, China.

While the end of production is typically not something to celebrate, this could be the start of something fantastic for Giga Nevada. By freeing up staff and production space, the Nevada-based facility can focus on its two primary goals listed on the Tesla website, achieving 100GWh of 4680 battery cell production and kicking Semi production into high gear.

Tesla has not updated its website to reflect the change in Megapack production, but it does highlight a few other key areas where the facility could now focus its freed-up energy. “Located less than an hour from Lake Tahoe, Gigafactory Nevada is one of the world’s highest volume plants for electric motors, energy storage products, vehicle powertrains, and batteries—producing billions of cells per year. Now, we’re continuing to grow Gigafactory Nevada with two new facilities: a 100 GWh 4680 cell factory and our first high-volume Semi factory.”

Tesla’s need for battery cells, notably those from Giga Nevada, cannot be understated. Top-selling products, including the Model 3 and Model Y, are still growing in popularity quarter over quarter, and battery cell production is the primary limit on how many vehicles the automaker can produce. Moreover, the Tesla Semi is poised to enter mass production in the near future alongside the highly anticipated Cybertruck, both of which will be incredible battery-cell-hungry vehicles.

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As for Tesla’s Energy division more broadly, CEO Elon Musk has maintained his belief that the segment will eventually outpace its vehicle offerings in terms of revenue, and by moving to more dedicated production locations – Shanghai and Lathrop – the business unit is well on its way towards achieving that goal.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

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The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Energy

Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe

The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack. 

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Credit: Tesla Asia/X

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery. 

The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system. 

New Tesla Megapack Milestone

As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.

To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.

Quick Megafactory Ramp

The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.

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While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.

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Energy

Tesla launches first Virtual Power Plant in UK – get paid to use solar

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

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Credit: Tesla Energy | X

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.

Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.

The company states that those who enroll in the program can earn up to £300 per month.

Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.

This is its first in the UK:

Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.

It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.

Tesla VPP program in California hits new capacity milestone

Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.

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