Tesla, Inc. is advancing its new Megapack battery factory in Brookshire, Texas, with a $200 million investment. This move is aimed at expanding energy storage production. The facility, located in Empire West Business Park, will replicate Tesla’s successful Lathrop, California, Megafactory, producing 10,000 Megapacks annually, equivalent to 40 gigawatt-hours (GWh) of energy storage, thereby supporting grid stability and renewable energy integration.
Tesla Megafactory and Investment Operations
Stream Realty Partners confirmed and announced the sale via a press release, which reported the sale of buildings 9 and 10 at the Empire West industrial park. The facility totals 1,655,253 square feet of the properties, which are completely leased to Tesla under a long-term agreement by BGO (BentallGreenOak) on behalf of an institutional investor who manages the properties.
The two buildings located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s Megafactory, which is completely dedicated to manufacturing Megapack battery systems. It is reported that Tesla is planning to invest $200 million into the site, including approximately of $44 million in facility upgrades like electrical, utility, and HVAC improvements, along with the roughly $150 million in manufacturing equipment, including robotic assembly and automated welding systems. An additional $31 million investment is attributed to a new distribution center and logistics infrastructure.
Infrastructure Breakdown and Tax Incentives
According to a Tesla-focused account on X (formerly Twitter), building 9 (~92,900 m²) is for Megapack assembly, and building 10 (~55,700 m²) is for warehousing and logistics. Building 9 spans about 1 million square feet and will function as a primary manufacturing floor where the Megapacks will be assembled. Building 10 covers approximately 600,000 square feet and is assigned to support the storage and distribution of completed battery systems.
Waller County, a local government, is crucial for tax incentives and economic development news, approved a 10-year tax abatement agreement with the firm. The commissioners offered up to 60% property-tax reduction if the firm can meet the hiring and investment targets. In the meantime, Tesla has also committed to employing at least 375 people by the end of 2026, thereby growing to 1,500 by the end of 2028.
Expanding U.S. Energy Storage Capacity
The new Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California, the ‘sister’ Megafactory used for production benchmarks. It expands the U.S. production capacity for the utility-scale energy storage unit. The Megapacks are designed to support grid stabilization and renewable-energy integration, areas that together form one of Tesla’s fastest-growing businesses.
The new infrastructure would provide Tesla plenty of room to safely store the completed batteries before shipping them for renewable energy projects across the country. The energy storage division has become a key growth engine for Tesla, generating approximately $3.01 billion in revenue in Q2 2025, with strong margins, outperforming the automotive segment. This recent expansion reinforces Texas as Tesla’s primary U.S. manufacturing hub, following the success of Gigafactory Texas in Austin, and the growing role of the Lathrop Megafactory in California.
