Tesla, the electric vehicle manufacturer founded by Elon Musk, claims it is growing in China as it constructs a new factory to produce its large-scale batteries.
10,000 of its “Megapack” energy storage devices will be able to be produced at the Shanghai site annually, the company claims.
An enormous battery called a megapack can be used to stabilize energy grids and stop power outages.
There is currently a Tesla Megapack facility in California, which makes 10,000 of the units annually. The new Chinese plant, according to Mr. Musk on Twitter, will be an extension to Tesla’s US production.
According to the Chinese state media agency Xinhua, construction on the new Megapack plant in China is anticipated to start later this year, with battery production beginning by the summer of 2024.
The largest battery producer is China, which Tesla will be able to use to boost production and reduce costs. In light of escalating tensions between Beijing and Washington, the US government has been pressuring American businesses to rely less on China.
The Biden administration last year prohibited US technology companies that receive federal financing from constructing “advanced technology” facilities in China for a period of ten years.
The policies were a component of a $50 billion (£40 billion) effort to expand the US semiconductor industry.
In response to worries that China is gaining ground on the US in terms of technology, Vice President Biden signed a law in August allocating $280 billion to high-tech industry and scientific research.
In Shanghai in 2019, Tesla established its first manufacturing outside of the US. Currently, the facility makes 22,000 cars every week.
Additionally, Tesla has revealed plans for a new overseas plant in Monterrey, Mexico, which is close to the Berlin area of Germany.