The new factory will be capable of producing around 10,000 Megapack units annually. Credit: Photo by Milan Csizmadia on Unsplash.

Tesla has confirmed plans to set-up a new manufacturing facility in Shanghai, China that will be capable of producing 10,000 Megapack energy products every year.

Tesla tweeted: “Our next Megafactory will be in Shanghai 🇨🇳—capable of producing 10k Megapacks per year.”

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The new facility will complement the company’s existing large-scale energy-storage unit factory in California.

Tesla’s Megafactory in California can manufacture 10,000 Megapacks every year.

Megapack systems primarily provide lithium-ion battery packs that help in storing renewable energy for electricity grids.

According to a report by Financial Times, Tesla’s co-founder and lead Elon Musk is also expected to visit China by the end of this week.

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An official signing ceremony for the new project was held in Shanghai.

It was attended by Tesla’s automotive senior vice president Tom Zhu, Tesla vice president Tao Lin along with other Chinese government officials.

During this signing event, Tesla officials confirmed that construction of the new plant will commence in the third quarter of the current fiscal year.

In addition, the production related activities will start from second quarter of 2024.

All of the products manufactured at this battery plant will be sold across the globe, the US techlogy giant said.

As per a Reuters’ report, the setting up of new plant will allow Tesla to leverage China’s battery supply chain for increasing the overall output of its Megapack lithium-ion battery units to address the emerging global energy storage demands.