SHANGHAI (Reuters) – Tesla (NASDAQ:) Inc will construct a gigafactory in Shanghai to make the Megapack power storage product, Chinese language state media outlet Xinhua reported on Sunday.

Elon Musk’s automaker will break floor on the plant within the third quarter and begin manufacturing within the second quarter of 2024, Xinhua reported from a signing ceremony in Shanghai.

The manufacturing facility will initially produce 10,000 Megapack items a 12 months, equal to round 40 gigawatt hours of power storage, to be offered globally, Xinhua stated.