Tesla is set to construct a new megafactory near Houston to support its battery storage business, Electrek reported on Wednesday, citing a tax abatement agreement with Waller County, Texas.
The facility, spanning over 1 million square feet near Katy, Texas, will be used to manufacture and manage Tesla’s Megapack energy storage systems, the report said.
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Under the agreement, Tesla will receive tax abatements based on property upgrades, which include $44 million in facility improvements and $150 million in manufacturing equipment.
While Tesla’s core revenue comes from its electric vehicle business, CEO Elon Musk has been expanding the company’s footprint in solar energy and battery storage.
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The company also operates a similar facility in China, where production trials began late last year, leveraging the country’s supply chain and lower lithium-ion battery costs.
The new Texas facility is expected to create approximately 1,500 jobs, according to Electrek.