A Tesla Megapack in Moss Landing, California
Andreas Evers | CNBC
Tesla will open a new megafactory in Shanghai, China, capable of producing 10,000 megapacks per year, the company announced in a tweet on Sunday.
A megapack is a very large battery that stores energy, helps stabilize the power grid, and prevents outages. These batteries allow grid operators to move additional capacity between counties or states, ensuring that power from intermittent sources can be stored and used when demand is higher or there are unplanned outages in a transmission grid.
Tesla currently has a megafactory in Lathrop, California that can produce 10,000 megapacks each year, according to the company’s website. In a tweet on Sunday, Tesla CEO Elon Musk said the China factory will complement production from the California factory.
The company plans to start construction of the factory in the third quarter of this year and is aiming to start production around the half of 2024, China’s state media company Xinhua reported Sunday at a signing ceremony in Shanghai.
Tesla and Musk did not immediately respond to requests for comment.