Construction of Tesla's megapack plant in Shanghai is scheduled to start in the first quarter of 2024, said the company on Friday.

The announcement came after it inked a land transfer deal on the same day with the Lin-Gang Special Area Administration.

The two sides reached the agreement in April this year on building a megapack facility in the special area.

The company said the plant will start production in the fourth quarter of 2024, with an initial production capacity of 10,000 units a year. The products will be sold globally.

The new facility is near an existing Tesla vehicle plant producing Model 3 and Model Y vehicles, which are sold in China and overseas.