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Elon Musk claims that the Tesla Shanghai factory will build megapack batteries.

Tesla said on Sunday that it would construct a factory in Shanghai to manufacture its large-scale batteries.

10,000 Megapack power-storage units would be able to be produced annually at the Chinese site, according to the business.

One of Tesla’s Megapacks, which can power an average of 3,600 households for an hour, is a huge battery that can be used to stabilise electricity systems and prevent blackouts. The batteries are intended for large-scale industrial and commercial projects.

According to the electric vehicle manufacturer, Tesla has a Megapack plant in Lathrop, California, that can produce 10,000 Megapack units annually.

Elon Musk, the CEO of Tesla, stated in a tweet on Sunday that the California plant’s “production” would be “supplemented” by the Shanghai Megapack factory.

According to state-run media outlet Xinhua News Agency, Tesla is scheduled to break ground on the new facility in the third quarter of this year and begin manufacturing in the second quarter of 2024.

Tesla already has an electric vehicle manufacturing site in Shanghai.

In an effort to attract more customers, the EV manufacturer has just reduced the price of its vehicles. According to its website, Tesla reduced prices in the United States by 2% to over 6% as of Friday.

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