A new battery facility will be constructed by Tesla in Shanghai, China. The electric vehicle manufacturer will partner with Chinese battery maker, Contemporary Amperex Technology Ltd (CATL), to construct the new facility.
For Tesla’s electric vehicles, the factory will make battery packs and cells.
The new factory is part of Tesla’s efforts to expand its operations in China, the world’s largest market for electric vehicles.
The company already has a factory in Shanghai that produces Model 3 and Model Y vehicles for the Chinese market. With the new battery factory, Tesla hopes to further reduce its reliance on imported batteries and improve its vehicles’ efficiency and affordability.
The new factory will be located near Tesla’s existing Shanghai factory and is expected to have an annual production capacity of 100 gigawatt-hours (GWh) of battery cells.
The construction of the factory is expected to take about two years and will create thousands of new jobs in the region.
