Elon Musk’s electric car company Tesla says it is expanding in China as it builds a new factory to make its large-scale batteries.
The plant in Shanghai will be able to produce 10,000 of its “Megapack” energy storage units a year, the firm says. A Megapack is a very large battery that can be used to help stabilise energy grids and prevent power outages.
Tesla already has Megapack plant in California, which also produces 10,000 of the units each year. Mr Musk said on Twitter that the new Chinese plant will be in addition to Tesla’s US factory. Tesla did not immediately respond to a BBC request for comment.
China is the biggest producer of batteries, which Tesla will be able tap into to increase production and lower costs.
The announcement came as the US government has been pressing American companies to become less reliant on China amid rising tensions between Beijing and Washington.
Last year, US technology firms that receive federal funding were banned by the Biden administration from building “advanced technology” facilities in China for 10 years.
The guidelines were part of a $50bn (£40bn) plan aimed at building up the US semiconductor industry.