Elon Musk’s electric car company Tesla says it is expanding in China as it builds a new factory to make its large-scale batteries.
The firm says the plant in Shanghai will be able to produce 10,000 of its “megapack” energy storage units a year.
The Mega Pack is a very large battery that can be used to stabilize the energy grid and prevent power outages.
Tesla already has a Megapack plant in California, which also produces 10,000 units per year.
Mr Musk said on Twitter that the new Chinese plant would be in addition to Tesla’s US factory.
Tesla opening Megapack factory in Shanghai to supplement output of Megapack factory in California https://t.co/hDpqoyNeOx
— Elon Musk (@elonmusk) April 9, 2023
Construction of the new Megapack plant in China is expected to begin later this year, with battery production expected to begin by the summer of 2024, according to Chinese state media outlet Xinhua.
Tesla did not immediately respond to the JEE News request for comment.
China is the largest producer of batteries, which Tesla will use to increase production and lower costs.
The announcement comes as the US government is pushing US companies to become less dependent on China amid rising tensions between Beijing and Washington.
Last year, the Biden administration banned American technology firms that receive federal funding from building “advanced technology” facilities in China for 10 years.
The guidelines were part of a $50bn (£40bn) plan to build the US semiconductor industry.
In August, Mr. Biden signed into law a $280 billion grant for high-tech manufacturing and scientific research, amid concerns that the United States is losing its technological edge to China.
In 2019, Tesla opened its first factory outside the US in Shanghai. The plant currently produces 22,000 vehicles a week.
Tesla also builds cars in Germany near Berlin and has announced plans for another overseas plant in Monterrey, Mexico.
China, the world’s largest car market, has seen a sharp decline in vehicle sales this year as the economy slows.
Last month, Tesla cut prices for models made at its Shanghai plant as it faced unsold vehicles and stiff competition in the country.
