Tesla lands tax abatement for Texas Megapack factory

County officials have approved a tax abatement for Tesla to build a manufacturing facility for its utility-scale battery energy storage product, Megapack, in the Lone Star State. The final approval is conditional on an agreement with city authorities.

From ESS-news

After starting production at its Shanghai energy storage factory last month, Tesla is now set to deliver another BESS manufacturing facility on the home soil.

Waller County, Texas, approved on Wednesday a tax deal for the manufacturer to build and operate its Megapack factory in an industrial park owned by Real Property Improvements. Tesla already held the lease on the 1 million square-foot building by a third party, logistics company DB Schenker.

The tax abatement covers two phases. The first one includes improvements to the manufacturing facility amounting to $44 million, such as grid connection capacity and HVAC. It also includes the installation of Megapack manufacturing equipment to the tune of $150 million.

The next phase of the deal involves a new $31 million distribution facility and Tesla’s investment of about $2 million in distribution equipment and building upgrades.

However, the tax abatement is conditional on an agreement with the City of Brookfield. If approved, the Texas factory is expected to employ 1,500 workers by its third year of operation.

The news doesn’t come out of the blue. In late January, CEO Elon Musk confirmed on the company’s Q4 2024 Earnings Call that Tesla was already building its third Megapack plant, but did not disclose the location.

Read the full story on ESS-news.