They will initially produce 10,000 Megapack units each year, equivalent to almost 40 GWh of electricity storage.

A new megafactory project by American automaker Tesla Inc. has received a construction permit, the management committee of the Lingang new area of the China (Shanghai) Pilot Free Trade Zone said.

As Tesla's first energy storage megafactory project outside the US market, it is located in the Lingang New Area and is expected to enter mass production in the first quarter of 2025.

The factory will initially produce 10,000 Megapack units each year, equivalent to almost 40 GWh of electricity storage.

Megapack is a powerful battery that provides energy storage and support, helping to stabilize the grid and prevent outages, according to Tesla.

In January 2019, Tesla broke ground on its Shanghai Gigafactory.