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Elon Musk-owned Tesla is preparing for an expansion in China by building a new plant to produce large-scale batteries.
The Shanghai factory can produce 10,000 of its "Megapack" energy storage units a year.
A Megapack is a massive battery that can help in the stabilization of energy grids and the prevention of power outages.
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Tesla already has a Megapack facility in California, where 10,000 units are produced yearly.
Mr. Musk said the new Chinese factory will be in addition to Tesla's US plant.
Chinese state media outlet Xinhua speculates that the battery manufacture is expected to begin in the summer of 2024.
China is the leading battery producer, which Tesla will be able to use to boost output and reduce prices.
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The news came as the US government has been pushing US firms to become less dependent on China as tensions between Beijing and Washington rise.
The Biden administration prohibited US tech companies that get federal funding from creating "advanced technology" plants in China for 10 years last year.
The guidelines were part of a $50 billion (£40 billion) initiative to grow the US semiconductor sector.
In August, Mr. Biden signed a law allocating $280 billion to high-tech manufacturing and scientific research amid concerns that the US is losing its technological advantage to China.
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Tesla launched its first production outside the US in Shanghai in 2019.
Currently, the facility produces 22,000 automobiles every week.
Tesla also manufactures cars near Berlin, Germany, and has announced plans for a new overseas facility in Monterrey, Mexico.
China, the world's biggest car market, has seen a steep decline in vehicle sales this year as the economy stalls.
Tesla cut the cost of models built at its Shanghai facility last month in response to a backlog of unsold vehicles and stiff competition in the country.
Source: BBC
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