September 16, 2026

Tesla begins Megapack 3 production at new 50 GWh Texas Megafactory

Tesla has started producing Megapack 3 at its new facility in Texas. The new battery packs have reduced installation time and costs and will accelerate energy storage deployment globally.

The new Megafactory, which will cost about $200 million, is located in Brookshire, Waller County. It can output 50 GWh of energy storage product annually. Construction began at the site in April 2025, and Tesla intends to use it to produce Megapack 3 exclusively. It will employ 1,500 workers by 2028.

In terms of capacity, a Megapack 3 can deliver about 5 MWh of AC energy. Projects can combine four units, which, when paired with a transformer and switchgear, can form a 20 MWh megablock.

Tesla’s Megapack 3 has improved thermal system plumbing that uses 78% fewer connections, compared to previous versions. This massive reduction makes the battery pack less prone to leaking and other maintenance issues, increasing stability.

Tesla is sourcing the new 2.8-litre large-format LFP cells locally and from China and Southeast Asia. The battery maker will continue to rely on the supply chain from Asia, with CATL reportedly remaining as a key partner. Industry chatter indicates BYD and EVE Energy will soon join the roster of Tesla energy storage suppliers. However, Tesla is believed to be pursuing the localisation of its supply chain.

Tesla also stated that installation time for Megapack 3 is 23 percent shorter. The upgrades also slash construction costs by up to 40 percent. The company has not revealed the nominal Ah capacity of the cells.

Battery manufacturing will continue at Tesla’s sites in Lathrop, California, and Shanghai, China. Globally, the EV maker’s production capacity has exceeded 100 GWh per annum.

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