Tesla to Deliver 548 Megawatt-hours of Megapack Energy Storage Systems to Orix for One of Japan's Largest Energy Storage Initiatives
Tesla and ORIX Partner to Build One of Japan's Largest Energy Storage Facilities
Tesla has announced a partnership with ORIX, a Japanese financial services group, to build one of Japan's largest power storage facilities. The project, set to be constructed in the city of Narita, marks a significant step towards Japan's transition to sustainable energy.
ORIX, founded in 1964 and headquartered in Tokyo and Osaka, has expanded globally, offering financial services in North America, Asia, the Middle East, and Northern Africa. The company operates in various sectors, including leasing, lending, life insurance, real estate financing and development, venture capital, investment, retail banking, and securities brokering.
The energy storage facility, equipped with Tesla's Megapack batteries, is expected to have a combined capacity of 548 megawatt-hours (MWh). This capacity is enough to support Tesla's projected growth and contributes to Tesla's continued expansion in the energy storage market.
Tesla's Megapack batteries have become a preferred choice for large-scale energy storage worldwide. In 2024, Tesla's energy storage deployments reached a record 31.4 gigawatt-hours (GWh), more than doubling from 14.7 GWh in 2023. The company anticipates a further 50% growth in storage deployments in 2025, suggesting a strong market demand for sustainable energy solutions.
The expansion of Megafactories also indicates Tesla's commitment to meeting the demand for large-scale energy storage. Tesla has already opened its second Megafactory in Shanghai, China, and the second Megafactory in Shanghai, along with the original Megafactory in Lathrop, California, have a combined capacity to produce 20,000 Megapacks annually, or 80 GWh of energy storage.
Operations at the Narita facility are expected to start as early as 2027. The project aims to enhance grid stability and support Japan's transition to sustainable energy. Tesla's advanced energy storage solutions will be integrated into the project.
Elon Musk quietly announced a third Megafactory during the Q4 2024 earnings call, but the timing and location of this facility were not announced. If and when it is built, the third Megafactory will undoubtedly contribute to Tesla's continued expansion in the energy storage market.
The information about the partnership and the power storage facility comes from a report by Nikkei. The largest energy storage plant in Japan, planned by Tesla and operated by ORIX, will be built in the city of Narita. The partnership will result in the construction of one of Japan's largest power storage facilities in Maibara, Shiga Prefecture.
This partnership underscores Tesla's commitment to sustainable energy and its growing role in the global energy storage market. As the world transitions towards renewable energy sources, partnerships like these will play a crucial role in ensuring a stable and sustainable energy future.
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