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Elon Musk: Tesla will build a new battery factory in Shanghai

2023-04-10 07:43:00, Tech CNA

Elon Musk: Tesla will build a new battery factory in Shanghai

Electric car maker Tesla is building a new factory in Shanghai to produce batteries.

The Shanghai factory will be able to produce 10,000 of its "Megapack" energy storage units per year, the firm says.

A "Megapack" is a very large battery that can be used to help stabilize power grids and prevent power outages.

Tesla already has the Megapack factory in California, which also produces 10,000 units annually.

Construction work on the new Megapack factory in China is expected to begin this year, with battery production to begin in the summer of 2024, according to Chinese state media Xinhua.

China is the largest producer of batteries, which Tesla will be able to use to increase production and reduce costs.

The announcement came as the US government has pressured US companies to become less dependent on China amid rising tensions between Beijing and Washington.

Last year, US technology firms that receive federal funding were barred by the Biden administration from building "advanced technology" facilities in China for 10 years.

The guidelines were part of a $50bn (£40bn) plan to build up the US semiconductor industry.





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