According to Chinese state media agency Xinhua, Tesla will construct a factory in Shanghai to produce its Megapack energy storage product.
Xinhua reported at a signing ceremony in Shanghai that Elon Musk’s company will break ground on the plant in the third quarter and begin production in the second quarter of 2024.
The new factory, which will initially create 10,000 Megapack units annually, or roughly 40 gigawatt hours of energy storage, to be marketed globally, would supplement a sizable existing electric vehicle manufacturing facility in Shanghai, according to Xinhua.
With the opening of its new factory in Shanghai, Tesla will capitalize on China’s globally renowned battery supply chain to increase production and reduce costs of its Megapack lithium-ion battery modules in order to fulfill the increasing demand for energy storage around the world.