Tesla is set to build a new Megafactory in Waller County, Texas, near Houston, following the approval of a tax abatement agreement with the local government.
Although Tesla has not yet made an official statement, Waller County Commissioners confirmed the project on Wednesday, approving a tax deal with the company. This agreement will offer Tesla tax abatements based on property improvements, including $44 million for facility upgrades and $150 million for new manufacturing equipment.
The project will involve Tesla taking over a 1-million-square-foot facility at the Empire West industrial park near Katy, Texas. Previously occupied by logistics company DB Schenker, the space will now house Megapack production lines. Tesla plans to operate a Megapack battery storage manufacturing facility there, contributing to its energy division’s growth.
The company is also planning to build a 600,000-square-foot distribution facility, which will have some manufacturing capabilities. The new project is expected to create around 1,500 jobs in the area.
Tesla’s energy business, which includes the production of Megapacks—large-scale battery storage units—has been expanding rapidly, although the company faced some price and margin challenges last year. Tesla already has Megafactories in Lathrop, California, and Shanghai, China, with production capacities of 40 GWh of Megapacks per year at each plant.
While it’s still unclear if the new facility will match this production capacity, the project represents a significant step in Tesla’s continued expansion in the energy sector.
