Tesla Files Plans for $10.1B Solar Cell Factory in Texas

Tesla plans a major expansion of its manufacturing presence in Texas. A public application under the Jobs, Energy, Technology & Innovation (JETI) Act, shared on X by industry watcher @SawyerMerritt, shows the company is evaluating a $10.1 billion vertically integrated solar cell manufacturing facility in Fort Bend County, Texas, located about 40 minutes from Houston.

Internally called "Project Crystal Sun," construction is expected to start later this year and finish in 2028, with commercial operations targeted for Q1 2029.

The filing provides this overview:

“Tesla is currently evaluating the development of a solar cell manufacturing facility located in Fort Bend County, Texas, within Lamar CISD’s jurisdiction.

The proposed facility would be expected to manufacture photovoltaic solar cells and/or assembled solar modules, which are components used to convert sunlight into electricity. Operations at the proposed facility would focus on producing finished photovoltaic products for deployment in utility-scale, commercial, and distributed solar installations.

While specific design parameters may vary, solar manufacturing facilities of this type typically include industrial buildings housing production lines, supporting utilities infrastructure, warehousing for raw materials and finished goods, and related site improvements.”

End-to-End Solar Manufacturing and Economic Impact

Project Crystal Sun is planned to consolidate end-to-end component production under one roof. Equipment listed in the filing includes wafer and ingot manufacturing machinery, coating equipment, metallization and printing lines, cell testing and quality control hardware, automated material handling systems, cleanrooms, and utility infrastructure.

The planned facility’s economic impact in Fort Bend County is projected to be substantial. The site anticipates 9,712 permanent full-time jobs and 1,147 peak construction jobs. Total direct and indirect economic impacts are estimated to generate ~$6.4 billion in state and local taxes and boost Texas GDP by roughly $107 billion.

This expansion follows SpaceX recently breaking ground on a solar fab in Texas, although that facility is meant to support the joint SpaceX-Tesla TERAFAB project and SpaceX’s plans to put AI data centers in orbit.

Powering the Next Generation of AI and Solar

Expanding domestic photovoltaic manufacturing directly supports consumer and commercial products. The new solar cell factory could supply Tesla’s energy offerings, including the new solar panels it launched earlier this year, and help lessen reliance on the grid as AI workloads—seen by Tesla as its next frontier—consume more of it.

The plan also tracks with prior indications. Elon Musk previously discussed a solar Gigafactory in North America to keep Tesla adequately powered during the AI boom, noting that large training clusters require vast energy generation.

By building solar cell manufacturing alongside battery storage infrastructure in Texas, Tesla is vertically integrating the energy supply needed to power its AI clusters, factories, and consumer products for years to come.