Tesla taps China for $2.9B solar gear in major US expansion push: report

Tesla is planning to scale domestic solar production by sourcing nearly $2.9 billion worth of manufacturing equipment from Chinese suppliers, a Reuters report said on Friday.

The initiative aligns with Elon Musk’s broader goal of building large-scale solar capacity within the United States.

Internal hiring plans and public statements indicate Tesla is targeting 100 gigawatts of solar manufacturing output before the end of 2028.

Demand for clean energy is rising alongside the expansion of data centres and energy-intensive technologies.

The push also reflects growing pressure on US firms to secure reliable energy sources domestically.

China suppliers in focus

Suzhou Maxwell Technologies has emerged as a key contender in Tesla’s procurement process.

The company is the world’s largest producer of screen-printing equipment used in solar cell production.

It is currently seeking export approval from China’s commerce ministry for the proposed deal, a step required for certain advanced manufacturing equipment shipments.

Other potential suppliers include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology.

These companies are being considered to support Tesla’s planned buildout of solar manufacturing capacity.

The supplier mix highlights continued reliance on specialised Chinese equipment despite efforts to localise production.

Export approvals and timelines

The equipment package, estimated at around 20 billion yuan, includes advanced screen-printing production lines used in solar cell manufacturing.

Some of this equipment will require export clearance from Chinese regulators, although it remains unclear how much of the total order falls under these restrictions.

There is also uncertainty around the approval timeline, which could influence delivery schedules. Suppliers have been instructed to complete shipments before autumn.

The equipment is expected to be transported to Texas, where Tesla is expanding its manufacturing footprint.

Any delays in approvals could affect installation timelines and production ramp-up schedules, potentially slowing initial output targets.

Scaling solar capacity in the US

Tesla’s procurement strategy reflects a broader push to localise solar manufacturing.

Job listings published by the company outline plans to establish a full supply chain on American soil, covering everything from raw materials to finished panels.

Elon Musk said in January that solar power could meet all electricity needs in the US, including rising demand from data centres.

The company’s internal targets suggest it is working towards deploying 100 gigawatts of solar manufacturing capacity annually, positioning solar as a key component of its long-term energy strategy.

This expansion also reflects wider industry shifts, where energy security and supply chain control are becoming central to manufacturing decisions, particularly in sectors linked to clean energy and artificial intelligence infrastructure.

Link to SpaceX and internal use

The planned solar capacity is expected to primarily support Tesla’s own operations. However, part of the output is also intended to power SpaceX satellites.

This integration points to a broader strategy where Tesla and SpaceX develop shared energy infrastructure.

Both companies are pursuing large-scale energy solutions, and the expansion of solar manufacturing could play a central role in supporting their future operations.

The approach suggests a move towards vertically integrated energy systems spanning production, storage, and consumption across multiple industries, linking energy generation directly with high-demand technology applications.