Tesla planning third Megafactory establishment in Texas
Tesla to Build Third Megafactory in Texas
Tesla is set to construct a new manufacturing facility in Waller County, Texas, marking the company's third Megafactory. The new facility, located in the Empire West industrial park in Brookshire, Texas, will be a state-of-the-art manufacturing hub for Tesla's Megapack product.
The Megafactory will occupy a significant footprint, with the Megapack servicing facility spanning a million square feet, and a separate 600,000-square-foot space dedicated to battery production. The property improvements for the new facility are estimated to cost $44 million, while $150 million has been allocated for necessary equipment.
The decision to build the Megafactory in Texas was facilitated by tax abatements offered by Waller County. Vince Yokom, the Waller County Economic Development Partnership executive director, expressed gratitude for Tesla's investment in Waller County and Brookshire.
The Megapack, a powerful battery unit, provides energy storage and support to help stabilize the grid and prevent outages. Tesla currently operates two Megafactories, one in California and another recently opened in China, each capable of producing 10,000 Megapacks per year.
The new Megafactory in Texas is expected to employ approximately 1,500 workers. Production of Tesla's Megapack 3 in the Houston, Texas, factory is anticipated to commence in the second half of 2026.
Tesla's energy storage deployments surged to 31.4 GWh in 2024, more than doubling from 14.7 GWh in 2023. With the new Megafactory in Texas, Tesla expects installations to grow by at least 50% this year.
In addition to the Texas Megafactory, Tesla is also planning to build a Megapack servicing facility in Western Australia. The former building to be used by the new Megafactory in Waller County, Texas, was occupied by a logistics company that handled Tesla parts.
This expansion in Texas is part of Tesla's broader strategy to increase its presence in the energy storage market. As the demand for sustainable energy solutions continues to grow, Tesla's Megafactories will play a crucial role in meeting this demand and driving the transition towards a more sustainable future.
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