United States: Mr. Elon Musk, the chief executive of Tesla, has announced on Twitter that his company would build a factory in Shanghai with the aim to assemble 10,000 giant batteries annually for electric producers and distributors.

The batteries, which Tesla calls Megapacks, are designed to store large amounts of electricity. According to Tesla, a single Megapack can power 3,600 homes for one hour. The batteries, which are roughly the length and height of an international shipping container, can discharge the electricity to run factories or homes when demand from the local power grid is high or during a blackout.

Tesla already has a Megapack plant in California, which also produces 10,000 units each year. Mr. Musk stated on Twitter that the new Chinese plant would be in addition to Tesla’s US factory.

According to reports, building work on the new Megapack plant in China is expected to begin later in 2023, with battery production due to get underway by the summer of 2024.

China is the biggest producer of batteries, so Tesla will be able to increase production and lower costs.

The announcement came as the US government has been pressing American companies to become less reliant on China amid rising tensions between Beijing and Washington.

In 2019, Tesla opened its first factory outside the US in Shanghai. The plant currently produces 22,000 vehicles a week.

In addition, Tesla makes cars near Berlin, Germany, and has announced plans for another overseas plant in Monterrey, Mexico.

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