Tesla is building a new battery factory in Shanghai. On Sunday, the automaker announced it would break ground on a new facility later this year. Once the plant is complete sometime before the second half of 2024, it will be capable of producing 10,000 Megapacks per year. Each container-sized battery can store enough energy to power around 3,600 homes for one hour. tesla said plans to sell the Megapacks it makes in China globally. The company has built Megapack facilities in some locations around the world, including and .
Sunday’s announcement sees Tesla increasing its reliance on China at a time when the US is using economic policy to pressure automakers and other manufacturers to produce more of their products domestically. Late last month, the Treasury Department detailed which electric vehicles qualify for the Cut Inflation Act’s $7,500 EV tax credit. Under the updated rules, companies in the department states must source the minerals in their car batteries from the US and other approved trade partners for the vehicles to qualify for the incentive. On the other hand, the Biden administration recently said that recipients of CHIPS funds would have to promise not to expand production capacity in China.
