Texas Megapack Factory Expected to Begin Production in 8-10 Months

Estimating 8-10 Months to First Megapack Made in Texas

Recent insights from a local source, along with transcripts from public meetings and various reports, suggest that the timeline for the first Megapack production at the new factory in Texas is estimated to be between 8 to 10 months. The factory will encompass approximately 1.77 million square feet, with 1.03 million square feet currently being converted and additional buildings being constructed or leased.

The primary bottleneck for the project is the necessary power upgrades both inside and outside the facility. It is important to note that the City of Katy is not involved in this project; the Waller County and City of Brookshire are the only local governing bodies participating, alongside significant oversight from the EPA and the State of Texas.

During the retrofit, Mr. Loyd Cockerham, a contact of the author, observed a 20,000-pound piece of machinery being dropped from a height of about five feet onto the warehouse floor, which only sustained minor nicks, indicating it is structurally sound. Currently, there are 206 overhead doors that must be removed and sealed, which presents a considerable challenge. Although Tesla has access to skilled construction teams, the task is still substantial.

The warehouse presently contains around 10,000 completed batteries that need to be relocated before any retrofit can commence, as well as nearly 44 million battery cells on pallets. The building also houses approximately 40,000 square feet of auto parts. Staffing for loading and unloading trucks has been minimized, and it is anticipated that the building will be cleared by mid to late June. The continued receipt of freight complicates the clearing process, leading to a projected delay of trial production until late December 2025 to February 2026.

The timeline for converting the warehouse at 111 Empire Boulevard in Brookshire into Tesla’s third Megapack factory is expected to take around 6 months. However, there could be an additional 3-month delay for roof work and clearing operations. The current status shows that the warehouse must be emptied, the roof needs replacement, and equipment installation is yet to begin. Furthermore, power upgrades are still pending, and although reinforcement for the 80-ton Megapacks may not be necessary, it remains a consideration.

Key factors affecting the project include the conversion of an existing structure, utility setup (especially electrical capacity), regulatory approvals, Tesla’s experience with similar projects, and the specific context of Waller County and the City of Brookshire. Tesla signed a lease for the building in November 2022 and officially opened it in December of the same year, originally designed as a logistics hub for heavy freight.

The building features over 200 overhead doors, with four designed for large trucks or equipment access. Additionally, there is another building (117 Empire) on the west end of 111 Empire, which is set to be leased and adds to the project’s overall footprint.

Tesla is investing approximately $194 million in upgrades and equipment, which includes $44 million for facility improvements and $150 million for manufacturing equipment. The upgrades will involve installing production lines and adapting the space for industrial use, focusing on interior retrofitting rather than extensive structural work.

Power infrastructure is a crucial aspect, as the factory requires significant electrical capacity for heavy equipment and battery testing. The timeline for utility upgrades is uncertain; without pre-coordination, it could take 6-12 months. However, given Tesla’s prior experience, there is potential for expedited upgrades.

Regulatory approvals are progressing, with Waller County Commissioners Court having approved a tax abatement agreement. The City of Brookshire is also considering additional incentives. Tesla’s history in Texas has shown an ability to navigate permitting efficiently, allowing for a streamlined approval process.

The estimated timeline for the project is as follows, starting from March 8, 2025:

• Phase 0: Clearing the warehouse and fixing the roof (1-4 months).
• Phase 1: Planning and initial permitting (0-1 month).
• Phase 2: Interior retrofitting and equipment delivery (2-4 months).
• Phase 3: Utility upgrades (3-6 months).
• Phase 4: Equipment installation and testing (1-2 months).

The total timeline is estimated to be 5-6 months (March 8 to August/September 2025), with the possibility of a 3-month delay due to the clearing and roof work. If expedited, trial production could begin as early as August 2025, or by September 2025 if delays occur.

Most regulatory hurdles appear to be resolved, with only routine permits remaining that are likely to be processed concurrently with construction. Tesla’s experience in Texas, coupled with the supportive local context, should keep delays to a minimum.

In summary, the conversion of 111 Empire Boulevard into a Megapack factory is projected to take 8-10 months, with production commencing between late 2025 and early 2026, contingent on the timely completion of necessary infrastructure upgrades and retrofitting.