Tesla has filed plans for another massive manufacturing project in Texas. While the company already has Giga Texas, a lithium refinery, a Megapack factory, and is currently in the process of building a dedicated factory for Optimus, Tesla is also looking to expand its solar cell manufacturing, potentially within the Lone Star State.
This week Tesla filed an application with Fort Bend County, seeking property tax abatements for a vertically integrated solar manufacturing facility southwest of Houston. The project, internally called “Project Crystal Sun,” is expected to cost around $10.1 billion.
If the project moves ahead, Tesla is targeting to begin construction between 2026 and 2028, with commercial operations planned to begin in the first quarter of 2029. (via Biz Journals)
What is Project Crystal Sun?
The filing suggests Tesla wants to keep tight control over its solar supply chain rather than simply assembling panels from external suppliers.
Unlike a facility that assembles components into finished solar panels, Tesla’s proposed facility would handle much of the manufacturing itself.
The application lists manufacturing equipment for solar cells, including coating equipment, metallization and printing lines, cell testing systems, cleanrooms, automated material handling, and more.
Tesla says the factory would be capable of manufacturing solar cells and assembled solar modules for utility-scale solar farms as well as commercial and distributed solar installations.
The Economic Impact
Like much of what Tesla does, the project would have a big impact on the local community. Tesla’s economic benefit analysis estimates the facility would eventually create 9,712 permanent full-time jobs, with annual payroll reaching approximately $1.3 billion by 2033.
If Fort Bend County grants the incentives, Tesla estimates its investment will generate over $6.4 billion in local and state tax revenue over a 38-year horizon.
What’s Next
It is important to note that Project Cystral Sun in Fort Bend County is not a done deal, at least in Texas. Tesla has not yet committed to building the factory in Texas, and the company says it is considering potential locations across multiple U.S. states and is seeking incentives from Fort Bend County to make it financially competitive with other undisclosed sites.
Tesla argues that without incentive support, the economics of building in Texas would be less favourable.
Neither Tesla nor Fort Bend County have announced when a final decision will be made.
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