Beijing: Tesla Inc. will build a new battery factory in Shanghai, increasing investment in China at a time of brewing tensions between Beijing and Washington.
Tesla will manufacture its Megapack large-scale energy-storage unit in the new facility, which adds to its factory for electric vehicles in Shanghai. The company led by Elon Musk, who is said to be visiting China this weekend, made the announcement at a signing ceremony for the project in Shanghai. Tom Zhu, Tesla’s senior vice president of automotive, and Shanghai government officials including vice mayor Wu Qing attended, with Tesla Vice President Tao Lin signing the contract.
The construction of the factory is expected to commence in the third quarter of this year, with production set to begin in the second quarter of 2024.
The initial planned production capacity of the factory is 10,000 Megapacks per year, equal to around 40 GWh of energy storage. The products will be sold worldwide.
China is a key market for Tesla, accounting for a large share of the company’s electric vehicle sales. Tesla has slashed prices for its cars in recent months, in part to better compete with rivals in China. But the company has faced scrutiny for its relationship with China, especially as U.S.-China tensions worsen.
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