Tesla will open a new Megafactory in Shanghai, China, that is capable of producing 10,000 Megapacks a year, the company announced in a tweet Sunday.

A Megapack is a very large battery that stores energy, helps stabilize the power grid and prevents outages. These batteries enable grid operators to move extra capacity between counties or states and ensure that power from intermittent sources can be stored and used when demand is higher, or when there are unplanned outages in a transmission network.

Tesla currently has a Megafactory in Lathrop, California, that is capable of producing 10,000 Megapacks units each year, according to the company’s website. In a tweet Sunday, Tesla CEO Elon Musk said the factory in China will supplement output from the factory in California.

The company is planning to start constructing the factory during the third quarter of this year, and it will aim to start production around halfway through 2024, the Chinese state media outlet Xinhua reported Sunday from a signing ceremony in Shanghai.

Tesla and Musk did not immediately respond to requests for comment.