Tesla (TSLA, Financial) is set to construct a new megafactory near Houston, Texas, that will serve as a dedicated battery storage facility. The project, located near Katy, Texas, will house Tesla's Megapack energy products in a building spanning over one million square feet. Under a tax abatement agreement with Waller County, Tesla will secure property tax abatements tied to planned facility upgrades, including $44 million in improvements and $150 million in new manufacturing equipment.
The initiative is one of CEO Elon Musk's efforts to expand Tesla into more solar energy and battery segments alongside its core electric vehicle business. Lithium-ion battery supply chains have also already shown huge cost advantages with a similar gigafactory in China, which started producing trials last year. Through local economic development and, at the same time, market diversification of Tesla, the new Texas facility is expected to generate approximately 1,500 jobs.
Tesla and the Waller County Economic Development Partnership did not immediately respond to requests for additional comments. This development underscores Tesla's aggressive expansion into energy storage solutions.
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