Tesla to build new megafactory in Texas, Electrek reports

March 5 (Reuters): Tesla (TSLA.O) is going to build a new megafactory near Houston to operate a battery storage facility, Electrek reported on Wednesday, citing a tax abatement agreement with Waller County in Texas.

The electric vehicle company is going to build and manage its Megapack energy products in over a 1-million-square-foot building near Katy, Texas, according to the report.

Under the tax agreement, the company will receive abatements from the county based on property upgrades, including $44 million in facility improvements and $150 million in Tesla manufacturing equipment.

The Waller County office of Economic Development Partnership and Tesla did not immediately respond to Reuters’ requests for comment.

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The majority of Tesla’s income is generated from its EV business, but CEO Elon Musk has been working on growing its solar energy and battery business.

Tesla has a similar gigafactory in China, where production trials began late last year. The plant will help the company take advantage of China’s supply chain and lower costs of its lithium-ion batteries.

The new factory in Texas should also create around 1,500 jobs, Electrek reported.