Tesla Inc (NASDAQ:TSLA) CEO Elon Musk announced on Twitter Sunday that the company will build a factory in Shanghai that will target the assembly of 10,000 giant batteries yearly for electric producers and distributors.
The batteries, known as Megapacks, are about the length and height of an international shipping container and can power 3,600 homes for one hour, according to Tesla.
Megapacks can generate electricity to run factories or homes during a blackout or when demand from the local power grid is high.
Many provinces in China now require new solar and wind farms to have enough batteries to hold 10% to 20% of the electricity generated, according to a report by The New York Times.
Construction of the new Megapack plant in China is expected to begin later this year, with battery production expected to start by the summer of 2024, according to Chinese state media outlet Xinhua.
Tesla currently has Megapack plant in California, which also produces 10,000 of these batteries each year.
The electric vehicles maker is also a large manufacturer of solar panels in the US.
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