The Lin-gang Special Area Administration, Fengxian District People's Government, China KangFu International Leasing Co Ltd, and Tesla (Shanghai) Co Ltd held a signing ceremony for a new grid-forming zero-carbon energy international cooperation demonstration center on June 20.

The Lin-gang Special Area Administration, Fengxian District People's Government, China KangFu, and Tesla sign to co-construct a new grid-forming zero-carbon energy international cooperation demonstration center on June 20. [Photo/WeChat ID: shlgguanweihui]

The project, which will be built in Lin-gang, has an investment of 4 billion yuan ($557.3 million), including a grid-side independent energy storage station and supporting facilities.

In February 2025, the Tesla Shanghai Megafactory — Tesla's first overseas energy storage factory — commenced production, planning to produce 10,000 units of Megapack — an ultra-large commercial electrochemical energy storage system, with a total energy storage capacity of nearly 40 GWh.

The project is part of Tesla's efforts to improve its strategic layout in China's new energy sector and marks a crucial step forward for China Kangfu in establishing a global presence and integrating technology R&D, real-world applications, and industrial collaboration.

Lin-gang Special Area has already gathered over 20 energy storage-related enterprises, forming a complete industrial chain covering demonstration applications, energy storage systems, key equipment, and battery cell materials. Looking ahead, Lin-gang aims to become an international benchmark, innovation hub, and industrial cluster for China's energy storage sector.