Brookshire, Texas – March 6, 2025 – Tesla, the electric vehicle and clean energy giant, has confirmed plans to construct its third Megafactory in Brookshire, Texas, marking a significant expansion of its energy storage production capabilities. The company will invest approximately $200 million into the project, which is expected to bolster Tesla’s rapidly growing Tesla Energy division and create around 1,500 jobs in the region.
The new facility, dubbed “Mega Brookshire,” will be located at the Empire West Industrial Park, just outside Houston, where Tesla has held a lease since late 2021. The site, previously used as a warehouse for shipping vehicle parts from Giga Texas and Fremont to service centers across North America, will now be repurposed to manufacture Tesla’s Megapacks and Powerwalls—key stationary energy storage products. The investment includes $194 million for upgrades and equipment across two buildings totaling 1.6 million square feet, along with an additional $31 million for a new distribution facility and $2 million for related enhancements.
Tesla’s Megafactories are distinct from its Gigafactories, which focus on vehicle production like Giga Texas in Austin, Giga Berlin, and Giga Shanghai. Instead, Megafactories are dedicated to energy products, a segment Tesla executives have hinted could soon rival its automotive business in revenue. The Mega Brookshire facility will produce Megapacks—massive battery units capable of storing over 3.9 megawatt-hours of energy, enough to power 3,600 homes for an hour—and Powerwalls, designed for residential energy storage. Both products utilize lithium iron phosphate (LFP) batteries, ensuring their production won’t compete with Tesla’s vehicle lineup, which primarily relies on nickel-manganese-cobalt (NMC) batteries.
The Waller County Commissioners Court approved a tax abatement agreement on March 5, 2025, to support the project, offering incentives based on property improvements. According to local officials, the facility is projected to generate between $8 billion and $10 billion in annual revenue once fully operational. “I want to thank Tesla for investing in Waller County and Brookshire,” said Vince Yokom of the Waller County Economic Development Partnership. “This will be a state-of-the-art manufacturing facility for their Megapack product, helping stabilize the grid and prevent outages.”
This announcement follows the recent launch of Tesla’s second Megafactory in Shanghai, which began production in February 2025 after breaking ground in May 2024. The Shanghai plant, alongside the first Megafactory in Lathrop, California, aims for a combined output of 20,000 Megapacks annually—equivalent to 40 gigawatt-hours of energy storage. While Tesla has not specified the production capacity for Mega Brookshire, its scale suggests a similar ambition. Based on the Shanghai timeline, the Texas facility could be operational by mid-to-late 2026.
Tesla’s energy business has seen explosive growth, with deployments of 20.4 gigawatt-hours of energy storage in 2024 alone, driven by record-breaking quarters of 4.1 GWh, 9.4 GWh, and 6.9 GWh. The company’s focus on energy storage aligns with global demand for reliable, sustainable power solutions, particularly as grids face increasing strain from renewable integration and extreme weather events. The proximity of Mega Brookshire to Giga Texas—less than 150 miles away—also hints at potential synergies, such as supporting the Tesla Semi’s distribution network.
This marks Tesla’s first major factory announcement since shelving plans for Giga Mexico, where it had initially intended to produce its next-generation vehicle. Instead, Tesla is doubling down on its U.S. operations, with Giga Texas and Fremont continuing to expand. CEO Elon Musk, speaking during the company’s Q4 2024 earnings call, emphasized the strategic importance of the third Megafactory, though he did not disclose its location at the time. “Tesla Energy is expanding rapidly,” Musk noted, “and this new facility will help us meet demand that continues to outpace supply.”
The Brookshire project underscores Texas’s growing role as a hub for Tesla’s operations, already home to Giga Texas, the company’s global headquarters and a manufacturing powerhouse employing over 20,000 people. With Mega Brookshire on the horizon, Tesla is poised to further cement its dominance in both electric vehicles and clean energy innovation.
