Tesla’s $10.1 Billion “Project Crystal Sun” Would Shift Solar Cell Production to US Soil

Tesla has cleared a significant local hurdle for a proposed $10.1 billion solar manufacturing complex in Texas, after the district school board voted unanimously 7-0 to approve a tax incentive agreement tied to the project, internally codenamed Project Crystal Sun.

As PV Magazine describes it, the planned facility would cover the full production cycle — from ingot growing and wafer slicing through finished module assembly — on a roughly 1,234-hectare site near Richmond. Of the total investment, $8.6 billion is earmarked specifically for manufacturing equipment to support highly automated production lines.

The agreement includes a ten-year property tax cap running from 2029 through 2038. Construction is scheduled to run from 2026 to 2028, with production slated to begin in early 2029. Tesla projects the completed facility would create 9,712 permanent jobs.

The project’s significance for US energy supply chains is considerable. Domestic module assembly capacity currently stands at roughly 60 GW, while cell manufacturing capacity was below 15 GW at the start of 2026. A vertically integrated plant — one that produces wafers and cells rather than simply assembling them from imported components — would represent a qualitative shift in how deeply solar manufacturing is rooted in the American market.

Industry analysts note the plant is oriented toward capturing a meaningful share of the global 100 GW annual capacity target. That said, Tesla is still weighing a competing site in another state, and securing favorable local tax terms remains a deciding factor in the final location choice.

Source: PV Magazine