Chinese official media announced on Sunday that Tesla will construct a new factory in Shanghai to produce its Megapack batteries.
According to Xinhua News Agency, the factory is anticipated to “start production in the second quarter of 2024” and will initially have an annual capacity of 10,000 Megapack units.
The US-based manufacturer of electric vehicles claims that its Megapacks, which can individually store more than three megawatt-hours of electricity, are designed to store energy and stabilise supply for power networks.
Following the huge Shanghai Gigafactory, which began construction in 2019, the facility will be Tesla’s second factory in the Chinese metropolis. According to Xinhua, Lu Yu, a local official, predicted that the new battery facility would produce a “industrial cluster” worth more than $14 billion.
Elon Musk, CEO of Tesla, had already given investors a vague but ambitious strategy to accelerate growth before the announcement.
After years of deficits, Tesla has found its footing and set a remarkable streak of profitability records as it has increased production and built plants.