U.S. automaker Tesla said on Tuesday it has started mass production of the revamped version of its Model Y in its Shanghai factory.

Tesla has commissioned a new megafactory in Shanghai, China, to manufacture energy-storage batteries, known as Megapacks, reported Xinhua. This facility, which is set to contribute to Tesla’s global energy storage goals,

Tesla’s first overseas energy storage plant starts operating as global competition from Chinese firms and pricing pressures mount.