Tesla (TSLA.O) is set to build a new megafactory near Houston, Texas, to house a battery storage facility, according to a report from Electrek on Wednesday. The information stems from a tax abatement agreement with Waller County.
The electric vehicle company intends to construct and manage its Megapack energy products within a building exceeding 1 million square feet, located near Katy, Texas, as detailed in the report. The tax agreement stipulates that Tesla will receive abatements based on property enhancements, encompassing $44 million in facility upgrades and $150 million in manufacturing equipment investments.
The Waller County office of Economic Development Partnership and Tesla did not promptly respond to Reuters’ requests for comment.
While the majority of Tesla’s revenue is derived from its EV operations, CEO Elon Musk has been steadily expanding the company’s solar energy and battery storage ventures. Tesla already operates a comparable gigafactory in China, where production trials commenced late last year. This facility is designed to leverage China’s supply chain and reduce the costs associated with its lithium-ion batteries.
Electrek also indicated that the new factory in Texas is projected to generate approximately 1,500 employment opportunities.
