U.S. carmaker Tesla Inc. will break ground in May on its new mega factory project capable of producing 10,000 Megapacks a year in Shanghai, the company has announced.

As Tesla's first energy storage mega factory project outside the U.S. market, it is 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 details on Tesla's website.

In January 2019, Tesla broke ground on its Shanghai Gigafactory, becoming the first to benefit from a new policy allowing foreign carmakers to establish wholly owned subsidiaries in China.

The plant showed remarkable efficiency and delivered its first batch of made-in-China vehicles within a year.