06:56 AM EST, 03/06/2025 (MT Newswires) -- Tesla (TSLA) will build a new Megafactory in Waller County, Texas, following a tax abatement agreement with local authorities, Electrek reported Thursday, citing Waller County Commissioners Court.

The report said the facility will focus on manufacturing Megapacks, a battery storage product.

Under the agreement, Tesla will receive tax abatements based on property improvements, the report said.

Tesla plans to invest $44 million in facility upgrades and $150 million in manufacturing equipment that the company will install. The next phase includes an additional $31 million in a planned distribution facility, with about $2 million in Tesla distribution equipment and building upgrades, according to the Electrek.

The factory will occupy a 1-million-square-foot building at the Empire West industrial park near Katy, Texas, previously used by DB Schenker, which handled parts for Tesla, the report said.

The project is expected to create 1,500 jobs, Electrek said, adding that while the exact production capacity is unclear, it will join Tesla's existing Megapack plants in California and China, each with a capacity of 40 GWh per year.

The report added that Tesla will build a 600,000-square-foot distribution facility with some manufacturing capabilities.

Tesla did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)