Construction starts on Tesla Megapack battery factory in Shanghai

Tesla broke ground on a new manufacturing plant in Shanghai, just weeks after CEO Elon Musk made a surprise visit to China in a bid to shore up the carmaker’s slumping sales.

The factory, which was announced in April last year, aims to begin production in the first quarter of 2025. It will be able to make 10,000 Megapacks — very large batteries used to store huge amounts of electricity — each year, according to a statement by Lingang Group, the government-owned developer of the area housing the plant.

The battery facility will be close to Tesla’s Shanghai Gigafactory, which is the company’s largest plant outside the United States, producing almost one million cars a year.