Electric car maker Tesla plans to build a factory in Shanghai to produce power storage devices for sale worldwide, Chinese state media reported.

The plans call for annual production of 10,000 Megapack units, according to the Xinhua News Agency and state television.

They said the company made the announcement at a signing ceremony in Shanghai, where Tesla operates a car factory.

The factory is due to break ground in the third quarter of this year and start production in the second quarter of 2024, the reports said.

Tesla did not immediately respond to requests for information.