Tesla is seeking to purchase gear value $2.9 billion for manufacturing photo voltaic panels and cells from Chinese language suppliers, together with Suzhou Maxwell Applied sciences, two individuals acquainted with the matter stated, as CEO Elon Musk goals so as to add 100 gigawatts of photo voltaic capability in america.
Mr. Musk stated in January that solar energy might meet all of the electrical energy wants of america, together with the ever-increasing demand from a rising variety of knowledge centres. Job postings on the Tesla web site stated it goals to deploy 100 GW of “photo voltaic manufacturing from uncooked supplies on American soil earlier than the tip of 2028”.
Suzhou Maxwell Applied sciences, the world’s largest producer of screen-printing gear used to make photo voltaic cells, is among the many main candidates to provide equipment for the challenge and has been looking for export approval from China’s commerce ministry, in line with the 2 individuals and a 3rd individual. The sources declined to be named as a result of the knowledge shouldn’t be public.
Different potential suppliers embody Shenzhen S.C New Power Expertise and Laplace Renewable Power Expertise , the primary two individuals stated.
A number of the estimated 20 billion yuan ($2.9 billion) value of apparatus, together with screen-printing manufacturing traces, would require export approval from Chinese language regulators, in line with the individuals. It wasn’t instantly clear how a lot of the gear would require approval or how lengthy it could take.
The Chinese language firms had been instructed to ship the gear earlier than this autumn, the three individuals stated, with two saying it could be shipped to Texas. Mr. Musk plans to construct the photo voltaic capability primarily to be used by Tesla, though some shall be used to energy SpaceX satellites, the individuals stated.
The potential order highlights one concern for the United States because it seems to be to cut back its dependence on China, reviving U.S. manufacturing nonetheless requires a point of commerce with the world’s second-largest financial system.
Chinese language media reported final month that Tesla has visited a number of photo voltaic firms in China. The small print of the businesses in superior talks, the estimated dimension of potential purchases, the supply timeline, and regulatory necessities are reported right here for the primary time.
Tesla, China’s commerce ministry, Suzhou Maxwell, Shenzhen S.C New Power and Laplace Renewable Power didn’t reply to Reuters requests for remark.
U.S. gigaplant with Chinese language gear
An order from Tesla would mark a giant increase for Chinese language producers of photo voltaic manufacturing gear, which have struggled with weak demand due to a home manufacturing glut.
The U.S. photo voltaic market, in the meantime, is closely protected by tariffs aimed toward curbing imports of cheaper panels and cells from China and Southeast Asia, the place many Chinese language producers function subsidiaries.
Nevertheless, photo voltaic manufacturing gear was excluded from tariffs by the Biden administration in 2024 on the urging of U.S. photo voltaic panel makers who argued they had nowhere else to purchase the machines wanted to arrange home factories. That exemption has been prolonged by the Trump administration, and america has been pushing to create its personal photo voltaic provide chain to cut back its dependence on Chinese language firms.
Mr. Musk has criticised tariff obstacles as making the economics of deploying photo voltaic in america “artificially excessive”, when the nation is dealing with a important energy scarcity pushed by a surge in demand from AI knowledge centres and manufacturing.
His photo voltaic ambitions lower a stark distinction with the power insurance policies of President Donald Trump, who seeks to maximise U.S. fossil gas manufacturing and has slashed federal subsidies for photo voltaic and wind tasks, which he calls expensive and unreliable.
Mr. Musk briefly labored for the Trump administration working the Division of Authorities Effectivity, which oversaw mass layoffs of federal employees to economize.
U.S. energy consumption hit its second straight document excessive in 2025 and can rise additional in 2026 and 2027, in line with the Power Data Administration (EIA).
Establishing 100 GW of photo voltaic manufacturing in a few years could be a staggering feat, and Mr. Musk is thought for making large guarantees on formidable timelines that usually don’t pan out.
Total, the U.S. had 1,300 GW of capability to generate electrical energy as of 2024, in line with a report printed final 12 months by the American Public Energy Affiliation. Out of that, solely 10%, or 135 GW, was solar-powered.
Tesla has been on a push to supply extra parts regionally in several areas. Nevertheless, it stays depending on 400 China-based suppliers to maintain its prices down. Sixty of them additionally provide Tesla globally, together with for its U.S. EV vegetation.
Manufacturing preparations for Tesla’s Cybertruck and Semi fashions within the U.S. encountered setbacks final 12 months after element shipments from China had been suspended, following a major tariff hike on Chinese language items imposed by the Trump administration, Reuters beforehand reported.
Printed – March 20, 2026 08:26 am IST