A $556 Million Battery Plant in China Shows Where Tesla’s Really Headed
When you think of Tesla, you probably think of electric vehicles. Model 3. Cybertruck. Ludicrous Mode. But while the world has been waiting for more car updates, Tesla just made a major move in a completely different direction. And it might be even bigger than a new vehicle.
On June 20, Tesla signed a $556 million deal to build China’s largest grid-scale battery storage plant.
Yes, you read that right. Not a Gigafactory. Not another showroom. A battery plant, but not for EVs. These are Megapacks, designed to store power for entire neighborhoods, factories, or utility grids.
Here’s why that matters.
What Is Tesla Building?
The project will be based in Shanghai and will focus on energy storage, not vehicles. The facility will produce Tesla Megapacks, which are large battery systems that store electricity and release it when the power grid needs support.
Each Megapack can hold over 3 megawatt-hours of energy. That’s enough to power about 3,600 homes for an hour. With thousands of these units planned, the impact could be massive.
Why China?
Tesla already has a strong presence in China with its Gigafactory in Shanghai. But this new facility is focused on energy, not cars.
China is rapidly expanding its wind and solar energy production. The challenge with renewable energy is that it’s not always available when demand is high. That’s where battery storage comes in. Tesla’s Megapacks help stabilize the grid by storing excess power and releasing it when needed.
This new plant will help China reach its clean energy goals while positioning Tesla as a key player in the energy sector.
What This Means for Tesla’s Future
This project highlights an important shift. Tesla is no longer just a car company. It is becoming a major energy company.
Tesla’s energy division is growing quickly. In 2024, Tesla deployed 31 gigawatt-hours of energy storage, a 113 percent increase from the previous year.
The new Shanghai plant will add another 40 gigawatt-hours of capacity per year. That expansion shows how seriously Tesla is investing in long-term energy infrastructure.
Why You Should Care (Even If You’re Just Here for the Cars)
This move isn’t only about Tesla growing its business. It’s about strengthening the future of clean energy. More energy storage means fewer blackouts, more reliable EV charging, and better support for solar and wind power.
For Tesla fans and investors, it’s also a sign that the company is building more than one path to growth. Cars will continue to evolve, but energy storage has the potential to power the world for decades to come.
While most people are waiting for the next Tesla vehicle announcement, the company is making big moves in the background. The $556 million battery project in China could be one of its most important yet.
It’s not flashy. It’s not on four wheels. But it could be the foundation of Tesla’s next chapter.
Chinese battery manufacturer Gotion High-Tech has completed a 0.2 GWh pilot production line, started in 2024, that has a 90% yield rate for its GEMSTONE all-solid-state battery.
The 2025 iteration demonstrates a 60% improvement in sulfide electrolyte ion conductivity, 150% higher cell capacity and 90% reduced stacking pressure pre-tension force, the company said. Its safety has been validated through tests like nail penetration, crush test and thermal stability test. The company has also initiated road testing.
Gotion has recently introduced six new energy products. The lineup includes the GEMSTONE all-solid-state battery, which has entered the pre-production phase, the G-Yuan quasi-solid-state battery that has range of 1,000 kilometers, the G-Series batteries designed for 12-year use and a 20 MWh energy storage system.
The G-Yuan battery delivers 300 Wh/kg energy density, enabling EV ranges of over 1,000 km. Its adaptive solid-solid interface technology ensures stable ion transport. A 3 mm steel nail penetration test confirmed its safety. Gotion is currently building a 12 GWh production line and prototype vehicles are exceeding 10,000 km in road tests.
The G-series is a 116 kWh, high-capacity standard box for heavy-duty trucks, delivering 175 Wh/kg specific energy to support megawatt-level ultra-fast charging and -40° C to 65° C temperature control range. It shows zero capacity decay in the first 3,000 cycles, zero energy loss over 1.2 million kilometers of driving and an ultra-long cycle life of 12 years or 10,000 cycles, according to Gotion.
The Grid Q energy storage system delivers 20 MWh capacity per unit, backed by a 25-year design life. The modular design saves space while Air+Liquid cooling brings efficient thermal management.
The Astroinno Gen-2 lithium manganese iron phosphate (LMFP) battery realizes 10-minute ultra-fast charging, 240 Wh/kg specific energy and 93% cold-weather capacity retention at -20° C. The battery passes the thermal runaway test at the PACK level.
Hankook Tire America has introduced the iON HT, a highway-terrain tire specifically designed for electric light-duty trucks, highlighting improved load capacity, low rolling resistance and high durability. The tire addresses unique technical demands of electric truck platforms, including support for heavier weight due to large battery packs and cargo.
Engineered with an “XL” load designation, the iON HT offers enhanced strength and rigidity suitable for heavy electric battery packs and typical cargo loads. Its Roll Lite Compound combined with Opti Cure Technology reduces internal friction and optimizes curing temperatures, significantly lowering rolling resistance and enhancing battery efficiency in EV applications.
The tire also features a ProDurable Compound alongside Opti Tread Technology, evenly distributing road pressure to achieve tread life up to 80,000 miles, among the highest-rated for EV-specific tires. Additionally, structured 3D-Embossed Sipes and flared shoulder grooves improve water evacuation and traction, particularly under wet conditions. The aggressive shoulder block design and reinforced iON Clad construction provide external impact resistance without compromising ride comfort.
“Electric vehicles, especially in the emerging light-duty truck category, bring new challenges and place unique demands on their tires,” said Rob Williams, President, Hankook Tire America Corp. “The iON HT is built from the ground up to deliver exceptional EV performance, and perfectly embodies the kind of innovation our iON line has come to represent for the industry.”
The tire will be commercially available beginning August 2025, initially offered in five sizes, from 18 to 22 inches, with Uniform Tire Quality Grade (UTQG) ratings of 900/A/A, and speed ratings of T or H. Hankook’s iON HT tire joins its wider iON product lineup, comprising all-season, summer and winter tires designed specifically for electric vehicle applications.
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Continued optimization of battery design means addressing thermal runaway and other issues. Pressure-sensitive adhesive (PSA) tapes may be an important part of the solution.
By Max VanRaaphorst—Market Manager, Energy Storage for Avery Dennison North America.
This is a dynamic time for the electric vehicle (EV) marketplace. According to an April 2025 report by Cox Automotive, EV sales rose 11.4% in the first quarter of 2025 compared to the first quarter of 2024. Many long-term forecasts predict continued double-digit growth.
The near-term outlook for the industry, however, is volatility. As of this writing, the Trump administration’s tariff plan remains in flux. Whatever their final form, tariffs seem likely to stir the global supply chains that manufacturers depend on.
Regardless, engineers tasked with making EV batteries safer, more durable, and more energy-dense must remain focused on the task at hand. Truly transformative technologies, such as solid-state batteries, are still years off. So, continued progress means further optimization of current technology platforms. Pressure-sensitive adhesive (PSA) tapes, integrated with functional materials, are a versatile, easy-to-use, and cost-effective material solution for many of today’s EV battery engineering challenges.
The thermal management ecosystem
A key challenge in this story of optimization is that of thermal management.
A battery is a complex ecosystem requiring temperature regulation for optimal cell performance during normal use as well as during extreme events. At the most basic level, that means cells should be warmed when they’re too cold and cooled when they’re too warm.
Batteries thus have three types of thermal requirements:
1. Thermal insulation Low thermally conductive (insulating) materials are used to protect normally operating cells from overheating, thus preventing thermal runaway events.
2. Thermal conductivity High thermally conductive materials, such as thermal interface materials (TIMs), are used to connect cells to cooling components and facilitate heat transfer.
3. Venting Venting strategies allow hot gases to escape a malfunctioning cell while protecting adjacent cells. These strategies can incorporate various thermal materials.
To understand thermal conductivity … go for a hike in the woods
Compare the idea of thermal conductivity to a hike in the woods. Imagine trying to bushwhack through a dense forest of trees, low-lying scrub, roots and rocks, and perhaps some mud. It’s difficult, you’re breathing hard, sweating and maybe cursing a bit! Now compare that to a walk on a flat, well-maintained, tree-lined trail. It’s easier and probably more enjoyable. From heat’s perspective, a low conductivity material is like that dense forest — difficult to traverse. A high conductivity material is the gentle trail.
Another important consideration is the length of the hike itself. A short hike through a dense forest may not be much of an obstacle. It’s the long slog that ultimately slows you down.
That brings us to PSA tape solutions for thermal management. Tapes, by design, are very thin. So while they don’t tend to offer high thermal conductivity, they do offer just a short path for heat to travel. But due to their tremendous versatility, tapes can also be integrated with low thermal conductivity materials, thus making them suitable for a wide range of thermal management applications within a battery pack.
Thermal runaway barrier solutions
Thermal runaway starts when an overheating cell combusts. That fire grows to the point at which hot gases and materials burst from the cell. The escaping matter causes other cells to overheat, catch fire and burst in turn. A module-level thermal runaway event can then spread to other modules in a pack, causing complete destruction of the battery pack and likely the vehicle.
Tapes can be used to encapsulate insulating (low heat conductivity) barrier materials, such as mica, ceramic paper or aerogels. These can then be placed between cells, modules, and/or on the inside of the pack lid. Because of tapes’ thin profiles, they’re an ideal choice for these narrow spaces — providing the necessary bond while allowing for the maximum possible thickness of the insulating material given the space constraints.
In some circumstances, these PSA-based solutions can prevent cell- or module-level thermal runaway propagation. But in most cases, they can at least slow the spread of thermal runaway, providing valuable time for passengers to exit the vehicle.
Thermal runaway venting solutions
As noted above, thermal runaway is underway when hot gases and materials erupt from a single cell. Cell manufacturers thus integrate venting strategies into their designs.
A vent is simply a port that allows hot, expanding gases and burning material to escape the cell’s confines, creating a more controlled pressure release. The problem lies in the fact that as those escaped rush through the module, they can infiltrate other cells through their vent ports, and thus initiate a thermal runaway event.
What’s needed is a venting strategy that allows that pressure release while protecting healthy cells from those hot gases and materials. Again, PSA tapes offer an elegant solution: In this case, it’s tapes with an anisotropic carrier—just one side of the tape offers flame resistance.
These PSA tapes are applied to battery cells during assembly, covering the vent ports. The anisotropic carrier then allows flames to escape through the port of a burning cell. But as the flames then circulate through the module, the flame-retardant side of the tape protects the vent ports of healthy cells.
PSA-based anisotropic tapes can help protect healthy cells and inhibit thermal runaway.
Flame retardance isn’t permanent. Eventually, the tape is compromised, and flames can affect healthy cells. But again, this is about mitigating and delaying full thermal runaway, and giving passengers valuable time for a safe escape.
Dielectric protection solutions
Electrical arcing in a high-voltage environment can often lead to fire, and thus is another issue that can affect a battery ecosystem’s thermal management. Again, PSA tapes are stepping up to the challenge.
Polymer film tapes can be used within the pack and module for bonding or to encapsulate critical parts. These tapes offer high dielectric strength per unit thickness and tend to inhibit heat flow, making them a preferred alternative to many traditional dielectric coatings.
A new PSA tape technology is a dielectric tape that can be applied to flat metal blanks prior to stamping and forming. It’s an easy-to-use solution that optimizes both dielectric strength and assembly flows, as it eliminates curing and cleaning, and other processes needed for traditional coatings. Avery Dennison has recently published a whitepaper explaining how stampable dielectric PSA tape technology can benefit manufacturers.
PSA tape solutions are available now
All of the PSA tape solutions discussed in this article are currently available. In fact, the Avery Dennison EV Battery Portfolio contains a wide range of PSA tape-based solutions engineered to help manufacturers address issues such as thermal runaway and dielectric protection. And these tapes are easy to incorporate into either manual or automated assembly processes, helping EV battery manufacturers optimize both workflow and design.
Tape solutions can be cut and stamped to spec and provided at scale by local converters. These third-party providers work closely with Avery Dennison and the battery manufacturer to ensure the right solutions are provided at the volumes needed, even in a volatile time for the automotive industry.
A bright future for EVs
Whatever volatility the near term might hold, the future is bright for EVs. By using solutions such as PSA tapes, manufacturers can be confident their products will meet consumers’ needs for safety, reliability and durability.
recell.store, a UK online marketplace for used electric vehicle batteries and a subsidiary of Altilium, has launched the All Battery Index (ABI), a monthly benchmark that tracks the market value of end-of-life EV battery packs in the UK. The ABI aims to provide a standardized reference for second-life use and recycling, addressing the lack of transparency and pricing consistency in the growing used battery sector
The May 2025 edition of the index includes data on the 15 top-selling EV models in the UK. According to recell.store, the Audi Q4 e-tron and Polestar 2 held the highest value, based on real-time market data and the company’s proprietary grading and pricing framework. The index is available online at www.recell.store/abi-benchmark-index.
The ABI uses a structured valuation model incorporating parameters such as state of health (SOH), state of charge (SOC), remaining capacity, pack size, and metal recovery potential. Battery packs are assigned R Grades—R1 to R4—based on their suitability for reuse or recycling. For example, R4 batteries with SOH and SOC above 80 percent are considered suitable for second-life use, while R1 batteries are deemed unsuitable for reuse.
“The ABI is a key step toward unlocking the true value of used EV batteries and bringing structure to a fragmented and opaque market,” said Dr Christian Marston, Chief Operating Officer at Altilium. “We believe the ABI will become the go-to benchmark for battery reuse and recycling in the UK.”
Rod Savage, Head of Operations at recell.store, added, “Our vision is to make end-of-life battery trading as transparent and efficient as trading any other commodity. ABI provides the pricing backbone for that ecosystem, helping participants navigate this emerging asset class with confidence.”
The launch of the ABI expands recell.store’s offerings, which already include a wide inventory of used battery packs for sale across the UK. The platform supports transactions between dismantlers, OEMs, insurers, and other stakeholders in the battery reuse and recycling value chain.
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Swedish electric sports car brand Polestar has introduced battery state-of-health certificates for its pre-owned Polestar 2 models.
The certificate, which documents the usable battery capacity as a percentage, is designed to give EV drivers confidence in the health of their vehicle batteries.
Every pre-owned Polestar has an extensive 112-point check, a 24-month warranty and the remainder of the eight-year or 100,000-mile battery warranty, effective from the date of first registration. All pre-owned Polestar 2s now undergo a battery state-of-health check, which is presented to customers before their purchase.
Polestar has opened its first pre-owned Space in Birmingham, UK focused on selling fully checked pre-owned Polestars.
Pre-owned Polestar 2, Polestar 3 and Polestar 4 models continue to receive over-the-air (OTA) updates, allowing the company to keep improving them over time. Since its launch in 2020, Polestar 2 has received over 20 OTA updates, including efficiency gains extending the car’s range through battery management, new functionality with Apple CarPlay and Android Auto, as well as various apps including Waze and YouTube.
“Where customers may have been apprehensive about a five-year-old Polestar 2 and its battery condition, Polestar is giving car buyers transparency and providing peace of mind,” said Matt Galvin, Managing Director, Polestar UK.
Taiwanese solid-state battery developer and manufacturer ProLogium Technology has formed a strategic partnership with Japan’s Kyushu Electric Power to develop a 24 V lithium ceramic battery (LCB) module tailored for construction machinery applications.
The partnership combines ProLogium’s battery technology with Kyushu Electric Power’s expertise in module design and end-user integration to create a high-performance, durable and versatile energy system tailored to the demanding operational needs of construction machinery.
ProLogium will supply its lithium ceramic batteries, while Kyushu Electric Power will take the lead in developing the 24 V modules and integrating them into heavy equipment for end users. ProLogium aims to start pilot production of its fourth-generation LCB by the end of 2025.
ProLogium’s battery uses a fully inorganic electrolyte and highly stable cathode and anode materials to minimize the risks of thermal runaway and fire. It is equipped with an Active Safety Mechanism (ASM) that automatically activates under high-temperature conditions, to improve safety performance in demanding operational environments.
The battery’s 100% silicon composite anode boosts energy density to allow for a more compact and lightweight battery pack—ideal for heavy machinery where both performance and space efficiency are critical. Additionally, the battery’s fast charging time reduces equipment downtime and replacement frequency, according to the company.
“As the world accelerates its shift toward sustainability, electrification in construction and heavy industries is both urgent and inevitable,” said Vincent Yang, founder and Chairman of ProLogium. “This partnership enables us to deliver longer-range energy solutions for heavy-duty operations, enhance productivity with fast-charging capabilities, and ensure stable battery performance in extreme cold—all contributing to the electrification of heavy industry.”
Battery technology continues evolving rapidly, but one key challenge persists: efficiently and accurately monitoring each battery cell. Dukosi, a company with over two decades of experience, has developed an innovative chip-on-cell technology designed to enhance the management of battery cells, offering solutions tailored for automotive, transportation, industrial, and energy storage applications. Charged recently talked to Dukosi’s Joseph Notaro to learn more about the tech.
At the core of Dukosi’s innovation is a compact chip placed directly on each battery cell. This chip continuously monitors critical metrics, including voltage and temperature. Unlike traditional wired monitoring methods, Dukosi’s approach transmits data wirelessly through a proprietary contactless antenna system. This means adding battery cells becomes as straightforward as stacking building blocks, significantly simplifying scalability from just one cell up to hundreds or thousands.
A key advancement from Dukosi is their C-SynQ protocol, a proprietary system that transmits data in a synchronized, star network configuration. Historically, battery monitoring has been complicated by the need for extensive wiring between cells and battery management systems (BMS). Dukosi’s solution reduces this complexity dramatically, using a single cable to monitor numerous cells simultaneously, facilitating seamless integration and substantially quicker deployment.
Another cool feature is Dukosi’s “Cell Passport” technology. Each cell-mounted chip contains built-in memory, storing lifetime information including manufacturing details, chemistry composition, and critical operational events, such as temperature spikes. This data collection helps battery owners evaluate cell health and suitability for second-life applications—crucial in extending the overall lifespan and sustainability of batteries.
Dukosi’s technology is notably agnostic to battery chemistry and cell type. Whether cells are prismatic, cylindrical, or pouch format, or whether they use advanced chemistries like lithium titanate, lithium iron phosphate, or nickel-manganese-cobalt, Dukosi’s chip-on-cell system accurately monitors and reports essential cell performance data. This versatility makes Dukosi’s solutions appealing across diverse industries and applications.
By capturing synchronized cell-level, Dukosi enables battery management systems to deliver precise state-of-charge and state-of-health assessments. Operators can safely and efficiently extract more usable energy from each cell, optimizing overall battery performance and reliability—critical considerations as battery systems become increasingly complex and widespread.
