U.S. carmaker Tesla will break ground in May with the construction of its new mega factory project in Shanghai, which will be capable of producing 10,000 Megapacks per year, the company 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 gigawatt hours of energy storage. Tesla's Megapack is a powerful battery that provides energy storage and support, helping to stabilize the grid and prevent outages, according to details on the company's website.

The new project, located in the Lingang new area of the China (Shanghai) Pilot Free Trade Zone, is scheduled to start production in the fourth quarter of 2024.

Over the past years, Tesla has continued to ramp up investment in Lingang, expanding the production capacity of its Gigafactory Shanghai and building more facilities, including a supercharger manufacturing factory.

In January 2019, Tesla broke ground with its Gigafactory Shanghai, becoming the first wholly foreign-owned car plant 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.

Tesla officially launched the new mega factory project last December, marking the opening of what the company called a "milestone project."

(With input from Xinhua)