A new mega factory project of U.S. carmaker Tesla Inc. has been granted a construction permit, according to the management committee of Lingang new area of the China (Shanghai) Pilot Free Trade Zone.

As Tesla's first energy storage mega factory project outside the U.S. market, it is located in the Lingang new area and expected to go into mass production in the first quarter of 2025.

The factory will initially produce 10,000 Megapack units every year, equal to nearly 40 GWh of energy storage.

Megapack is a powerful battery that provides energy storage and support, helping to stabilize the grid and prevent outages, according to Tesla.

In January 2019, Tesla broke ground on its Shanghai Gigafactory.