By Vlad Schepkov
Tesla (NASDAQ:TSLA) will build a new Megapack battery factory in Shanghai, China, the country's Xinhua agency reported over the weekend, as part of the automaker's efforts to expand its presence in the country and meet the growing demand for renewable energy storage solutions.
The new factory will produce Tesla's Megapack batteries designed for large-scale energy storage applications such as solar and wind farms, as well as utility-scale grid services. The Megapack is a containerized lithium-ion battery system that can store up to 3 megawatt-hours of energy.
According to Tesla's announcement, the new factory will have an initial production capacity of 10 gigawatt-hours per year, with potential for expansion in the future. The factory will be located in the Lingang area of the Shanghai free trade zone, and is expected to create more than 1,000 new jobs.
The move is part of Tesla's broader strategy to expand its operations in China, which is the world's largest market for electric vehicles and renewable energy. The company already operates a Gigafactory in Shanghai that produces batteries and electric vehicles, and has plans to build a second Gigafactory in the country in the near future.
Shares of TSLA are trading slightly lower premarket on Monday, and are up over 80% YTD.