Tesla Begins Megapack 3 Production at Texas Megafactory
Tesla has started production of next-gen Megapack 3 at a new Texas factory, expanding U.S. capacity as grid-scale storage demand grows.
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Global N Press
8/5/20262 min read
BROOKSHIRE, Texas, August 5, 2026 — Tesla has begun production of its next-generation Megapack 3 battery energy storage systems at a new factory in Brookshire, Texas, expanding its U.S. manufacturing capacity as demand for grid-scale energy storage grows.
Located in Waller County near Houston, the facility has a planned annual production capacity of 50 gigawatt-hours (GWh). Tesla said production began about 16 months after the project was launched, making the plant the company’s third Megafactory globally and its second in the United States.
Expanding U.S. Energy Storage Capacity
The Brookshire facility is part of the Empire West industrial development and is located near the Texas electricity market operated by the Electric Reliability Council of Texas (ERCOT).
Tesla also operates Megafactories in Lathrop, California, and Shanghai, China. The Shanghai facility has a planned annual production capacity of 40 GWh.
The Texas plant comes as rising electricity demand and the expansion of renewable power generation increase the need for large-scale battery storage. Grid-scale batteries can store electricity when supply is abundant and discharge it when demand increases or renewable generation declines.
Higher-Capacity Megapack 3
The factory will initially produce Megapack 3, Tesla’s latest utility-scale battery storage system. The system can store about 5 megawatt-hours (MWh) of electricity, compared with roughly 3.9 MWh for the previous Megapack 2 XL.
The higher storage capacity allows more energy to be stored within a similar physical footprint, a factor that could affect the economics of utility-scale storage projects.
Growing Energy Storage Business
Tesla deployed 13.5 GWh of energy storage products in the second quarter of 2026, up 41% from a year earlier and its second-highest quarterly deployment. Revenue from its energy generation and storage business rose about 13% year over year to approximately $3.14 billion.
The company faces growing competition and pricing pressure as battery manufacturers expand production capacity worldwide.
Tesla is also expanding its international energy-storage business. In June, British energy infrastructure company NatPower and Tesla announced a multiyear agreement covering more than 25 GWh of battery storage projects in Europe, with initial projects planned in Italy and the United Kingdom.
The Brookshire facility adds substantial manufacturing capacity to Tesla’s global energy-storage network. The pace at which the plant reaches its planned 50-GWh annual capacity will depend on production ramp-up, battery-cell supply, customer demand and broader market conditions.
