Tesla said in a tweet on Sunday that it will open a new Megafactory in Shanghai, China, with the capacity to produce 10,000 Megapacks annually.
According to the company’s website, Tesla now operates a Megafactory in Lathrop, California, with the capacity to produce 10,000 Megapacks units yearly. Elon Musk, CEO of Tesla, tweeted on Sunday that the Chinese factory would be used to supplement production at the California facility.
A Megapack is a massive battery that stabilizes the electricity grid and prevents blackouts, as per Reuters. These batteries allow grid operators to shift extra capacity between counties or states and store electricity from intermittent sources for use when demand is higher or when transmission networks experience unanticipated outages.
Chinese state media Xinhua said on Sunday from a signing event in Shanghai that construction on the factory will start in the third quarter of this year, with manufacturing beginning in the middle of 2024.