Tesla acquired land in Shanghai to build a megapack battery manufacturing plant, a Chinese state media outlet said December 22. Production at the plant is expected to begin during the fourth quarter of 2024.

According to Reuters, the company paid $31.13 million for use rights to a 48.7-acre plot near an existing Chinese Tesla plant that produces Model 3 and Model Y vehicles, according to a separate government statement released December 21.

Tesla did not immediately respond to a request for comment from Reuters.

Construction on the project, which will be able to produce 10,000 megapacks annually, is scheduled to begin during the first quarter of 2024. Back in April, Tesla said that it would start construction on the facility during the third quarter of 2023 with production originally expected to commence during the second quarter of 2024.

The U.S. EV manufacturer already maintains a gigafactory in Shanghai capable of producing 1.1 million units annually. Still, the company has said that it is interested in expanding its EV capacity in Shanghai, which would require additional regulatory approvals.