County officials in Texas have approved a tax abatement for Tesla to build a factory for its Megapack utility-scale storage product in the Lone Star State. The final approval is conditional on an agreement with city authorities.
Image: Tesla
After starting production at its Shanghai energy storage factory in February, Tesla is now set to deliver another battery energy storage system (BESS) factory on its home soil.
Waller County, Texas, approved a tax deal for the manufacturer this week 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 (92,900 square meters) 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.
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