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- During a visit to Shanghai, Elon Musk revealed plans for Sunday's construction of a new Shanghai battery factory.
- Xinhua reported that the factory will produce large-scale energy storage units called Megapacks.
- Rep. Mike Gallagher met earlier this month with Apple CEO Tim Cook to discuss relations with China.
During a Sunday visit to Shanghai, Elon Musk announced plans to build a new factory for batteries, China's official news agency Xinhua reported.
The new project by Tesla, which was announced at a signing ceremony, involves the construction of a Megafactory to produce its energy storage Megapack.
According to the report, Tesla stated that the factory would aim to produce 10,000 Megapacks per year for worldwide sales.
According to Tesla, the Megapack is a large battery that stabilizes energy grids. It can store enough energy for about 3,600 homes per hour and can store enough power to power them. The Megafactory, which is located in Lathrop (California), can also produce 10,000 units per year.
Musk's visit was made in China amid increased tensions between the US and China, including the shooting a rumored Chinese spy balloon. There were also concerns about Beijing's support of Vladimir Putin and the war in Ukraine.
The Tesla CEO continues to invest in China. However, it is possible that other companies are looking to distance themselves from him.
Apple mulls 'economic decoupling'
Bloomberg reported that Rep. Mike Gallagher (a Wisconsin Republican) and Democrat Raja Krishnamoorthi met with tech executives, including Apple CEO Tim Cook, as well as executives from Google and Microsoft, earlier this month to discuss their relations with China.
Gallagher met with Disney CEO Bog Inger to discuss the censorship of content in China by US media companies.
Gallagher stated to Bloomberg that Apple is at the core of the most difficult aspect of the competition. This is because companies with a large presence in China will have to face the fact that some type of economic decoupling may be inevitable. It's going on."
He stated that most executives he spoke to wanted clear, concise lines from the government telling them what areas of the Chinese economy to avoid.
Apple announced plans last year to move some production from China to address supply chain delays caused by its zero-COVID policy, protests at Foxconn's Foxconn factory and the disruptions in supply chains.
According to The Wall Street Journal, it is looking at increasing production in India and Vietnam to decrease Foxconn's dependence.
Bloomberg was told by Gallagher that he did not expect companies to cut all ties with China. He said that if China takes military action against Taiwan, all bets will be off.
Taiwan Semiconductor Manufacturing Company, the largest chipmaker in the world, is Apple's biggest customer. It is responsible for producing more than half of the world's 1.4 million smartphone processors, as well as the microcontrollers used in car manufacturing.
Robert O'Brien was the Trump's national security advisor and stated to Semafor in March that the US would prefer to destroy these factories than allow them to fall under Chinese control.
Insider received requests for comment from Gallagher, Apple, and Tesla but they didn't respond immediately.
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By: stabahriti@insider.com (Sam Tabahriti)
Title: Elon Musk reveals plans for a new factory making Megapacks on Shanghai visit, while Apple mulls ‘decoupling’ from China
Sourced From: www.businessinsider.com/elon-musk-tesla-plans-new-megapack-factory-in-china-2023-4
Published Date: Sun, 09 Apr 2023 14:20:00 +0000
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