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First Megapack 3 rolls off the line at Tesla's new Texas Megafactory1:22

First Megapack 3 rolls off the line at Tesla's new Texas Megafactory

Energy · August 6, 2026

Tesla has started production of the Megapack 3 in Brookshire, near Houston, in a factory designed for 50 GWh a year. Here is what is new about the battery and why it matters.

Tesla Energy has a second big battery factory in the United States. The first Megapack 3 has rolled off the line at the new Megafactory in Brookshire, Texas, west of Houston, marking the start of production.

The factory

  • Location: Brookshire, Texas, near Houston.
  • Capacity: designed for 50 GWh of storage a year once fully ramped.
  • Product: Megapack 3, Tesla's newest utility-scale battery.

For comparison, Tesla deployed 46.7 GWh of storage across all its products in all of 2025. One factory of this size alone could produce more than that each year.

What is new in Megapack 3

  • About 5 MWh of energy per unit.
  • New cells: a large-format LFP cell, a chemistry that is cheaper and longer-lasting than the nickel-based cells in many cars.
  • Simpler cooling: the thermal system has 78% fewer connections than the previous generation, which means fewer parts that can leak or fail.

Where the cells come from

Tesla sources cells from the US, Southeast Asia and China. CATL is reported to be its biggest supplier for storage, with BYD and EVE Energy also in the mix. Tesla is building more US supply through its own LFP line in Nevada and a planned deal with LG Energy Solution. Reducing dependence on Chinese cells matters because of US tariffs and incentive rules.

Why it matters

Energy storage is Tesla's fastest-growing business and one of its most profitable. Utilities and data centers need large batteries to balance solar and wind power and to handle peaks in demand. A US factory close to the Texas grid, one of the fastest-growing storage markets in the world, shortens delivery times and helps customers qualify for local-content incentives.

What to watch

How quickly Brookshire ramps up, the first customer projects with Megapack 3, and whether storage deployments return to growth after a softer third quarter.

Sources

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