(Bloomberg) -- Tesla Inc. has acquired land to build its Shanghai Megapack factory that will have capacity to produce 10,000 battery packs a year, according to a company representative, paving the way for construction to begin.
The US electric vehicle maker, which also runs other projects like energy storage and super computers, previously said construction for the facility was scheduled to start in the third quarter of this year and production would begin in the second quarter of 2024. Most of the megapacks manufactured will be for export.
Read More: Tesla New Battery Plant Cements China's Place in Energy Storage
The Shanghai location is Tesla's second dedicated Megapack factory, following the Lathrop plant in California. Tesla's EV facility in Nevada can also make the Megapack.
Tesla's energy generation business is a fast growing revenue stream. The unit recorded $1.6 billion in revenue in the third quarter, up 40%, driven by sales of the Megapack, a battery that helps stabilize the grid and prevent outages, according to company reports.
--With assistance from Chunying Zhang.
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