Tesla setting up third Megafactory in Texas

Tesla’s energy storage business is booming, and the company is expanding its production footprint by building its third Megafactory in Texas, which will create 1,500 jobs.

Waller County, Texas, will soon host Tesla’s third Megafactory after offering tax abatements. The facility will be located in the Empire West industrial park in Brookshire and employ about 1,500 workers.

Tesla will manufacture and store Megapacks in an existing one-million-square-foot structure and produce some batteries in a yet-to-be-constructed 600,000-square-foot space. The former building was occupied by a logistics company that handled Tesla parts.

The tax rebates cover $44 million spent improving the property and $150 million for installing the necessary equipment. Another tranche will cover the new structure that Tesla will construct.

“I want to thank Tesla for investing in Waller County and Brookshire,” said Vince Yokom, the Waller County Economic Development Partnership executive director. “This will be a state-of-the-art manufacturing facility for their Megapack product. It is a powerful battery unit that provides energy storage and support to help stabilize the grid and prevent outages.” (via CoveringKaty)

Tesla’s energy storage deployments surged to 31.4 GWh in 2024, more than doubling from 14.7 GWh in 2023. The company expects installations to grow by at least 50% this year. Tesla currently has two Megafactories, one in California and another recently opened in China, each capable or producing 10,000 Megapacks per year.

Last month, Tesla signed a contract to build a Megapack servicing facility in Western Australia.

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