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Tesla is in talks to procure solar manufacturing equipment worth about $2.9 billion from Chinese suppliers as part of its plan to scale domestic solar production in the United States, Reuters reported citing people familiar with the matter.
The move is tied to CEO Elon Musk’s ambition to deploy 100 gigawatts of solar capacity in the U.S. by 2028, a target that reflects the company’s broader push into energy generation alongside its electric vehicle business.
Among the key suppliers under consideration is Suzhou Maxwell Technologies, a major producer of screen-printing equipment used in solar cell manufacturing. Other potential vendors include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology, the sources said.
The proposed deal, estimated at around 20 billion yuan, includes production lines and specialized machinery required for solar cell and panel manufacturing. Some of the equipment will require export approvals from Chinese regulators, potentially adding uncertainty to timelines.
Sources said suppliers have been asked to deliver the equipment by autumn, with shipments expected to be directed to Texas. The planned capacity is intended primarily for Tesla’s own energy needs, though a portion may support operations at SpaceX, Musk’s satellite and space venture.
The development highlights a broader challenge facing U.S. efforts to localize clean energy manufacturing, as companies continue to rely on Chinese equipment and supply chains despite geopolitical tensions.
Tesla has recently increased engagement with Chinese solar manufacturers, underscoring the scale and urgency of its expansion plans as demand for electricity—driven in part by AI data centers—continues to rise.
The move is tied to CEO Elon Musk’s ambition to deploy 100 gigawatts of solar capacity in the U.S. by 2028, a target that reflects the company’s broader push into energy generation alongside its electric vehicle business.
Among the key suppliers under consideration is Suzhou Maxwell Technologies, a major producer of screen-printing equipment used in solar cell manufacturing. Other potential vendors include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology, the sources said.
The proposed deal, estimated at around 20 billion yuan, includes production lines and specialized machinery required for solar cell and panel manufacturing. Some of the equipment will require export approvals from Chinese regulators, potentially adding uncertainty to timelines.
Sources said suppliers have been asked to deliver the equipment by autumn, with shipments expected to be directed to Texas. The planned capacity is intended primarily for Tesla’s own energy needs, though a portion may support operations at SpaceX, Musk’s satellite and space venture.
The development highlights a broader challenge facing U.S. efforts to localize clean energy manufacturing, as companies continue to rely on Chinese equipment and supply chains despite geopolitical tensions.
Tesla has recently increased engagement with Chinese solar manufacturers, underscoring the scale and urgency of its expansion plans as demand for electricity—driven in part by AI data centers—continues to rise.
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