BEIJING, June 20 (Reuters) - Tesla's first

China grid-scale battery storage station using its megapack

batteries will be located in Shanghai, local media Yicai

reported on Friday.

The deal involving an investment of 4 billion yuan ($556.8

million) was signed between the U.S. automaker, China Kangfu

International Leasing Co and the Shanghai local government on

Friday, according to the report.

Tesla's battery megafactory in Shanghai for making its

megapack batteries began production in February.

($1 = 7.1840 Chinese yuan)