Tesla is opening a Megafactory in Shanghai, the electric car manufacturer announced on Twitter Sunday.

The factory will be able to produce 10,000 Megapacks per year, which are very large batteries used to store utility-scale amounts of electricity. The company announced the new factory with a picture of a signing ceremony in China.

“Tesla opening Megapack factory in Shanghai to supplement output of Megapack factory in California,” Elon Musk said on Twitter.

Chinese state media outlet Xinhua first reported the news, saying the electric automaker will break ground in this year’s third quarter and begin production in the second quarter of 2024.

Tesla operates a Megafactory in Lathrop, California, capable of producing 10,000 Megapack units every year - equivalent to 40 gigawatt-hours of energy storage.