Investing.com-- Tesla Inc (NASDAQ:TSLA) has officially commenced production at its new Megafactory in Shanghai, a facility dedicated to manufacturing its large-scale energy storage batteries, known as Megapacks, Xinhua news agency reported on Tuesday.
With an initial capacity to produce 10,000 Megapacks annually—equivalent to about 40 gigawatt-hours of energy storage—the facility is expected to play a crucial role in Tesla’s expanding energy business, the Chinese state media reported.
The U.S. automaker projects a 50% year-on-year increase in energy storage deployments by 2025, according to the report.
Located in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, the factory spans approximately 200,000 square meters and represents an investment of 1.45 billion yuan ($202 million), the report said.
Mass production began just eight months after construction started, Xinhua noted.
The Shanghai facility follows Tesla’s first Gigafactory in the city, which was built in under a year in 2019.