Tesla to build a new megapack manufacturing facility in Texas after obtaining a tax abatement from Waller County to build the plant near Houston, further advancing its energy storage business as revealed by local government documents.
The facility in the Empire West industrial park near Katy, Texas, will be Tesla’s third site worldwide, projected to create 1,500 jobs by its third year of commencement.
As per the proposed agreement, Tesla will receive tax abatements from Waller County for property improvements. The deal includes $44 million in facility enhancements and $150 million in manufacturing equipment. The next phase involves a new $31 million distribution facility with approximately $2 million in distribution equipment and building upgrades.
Tesla’s new Houston plant, covering one million square feet, was initially leased before being repurposed for battery storage manufacturing. The move aligns with Tesla’s overall plan to expand its energy storage division, complementing its primary electric vehicle business. Tesla executives stated that the facility will be modeled after the existing Megafactory in Lathrop, California, designed for Megapack battery storage system production.
Logistics company DB Schenker previously occupied the space, handling parts for Tesla. DB Schenker will vacate the space, allowing Tesla to set up Megapack production lines at the location.
Along with the existing structure, the project includes building an additional 600,000-square-foot distribution facility, which will also have manufacturing capabilities.
Tesla prepares to make several modifications to the site during its conversion, upgrading heating and cooling systems to meet production requirements and increasing electrical capacity. The Houston facility produces 10,000 Megapacks annually. Moreover, Tesla manufactures energy storage products in Nevada and Shanghai. The Megapack, Tesla’s utility-scale battery storage system, is designed to stabilize electrical grids and support renewable energy integration.
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