Construction of U.S. carmaker Tesla's energy storage megafactory in Shanghai is expected to be finished by the end of this year, according to Tesla China.

The factory, which broke ground in late May, will be dedicated to manufacturing the company's energy-storage batteries, Megapack. Mass production is planned for the first quarter of 2025, with an initial output of 10,000 units annually, equal to around 40 GWh of energy storage.

Covering an area of approximately 200,000 square meters, the new plant represents a total investment of around 1.45 billion yuan (about $199 million), according to the administration of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone.

The mega factory is the first of its kind built by Tesla outside the United States and the company's second plant in Shanghai, following the inauguration of its gigafactory in 2019.