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Tesla is moving closer to a major deal that could reshape its renewable energy ambitions, as Tesla explores a roughly $2.9 billion deal with Chinese suppliers to boost solar manufacturing in the United States.
According to people familiar with the matter, the company led by Elon Musk aims to secure advanced production lines especially screen-printing systems used in solar cell fabrication, to accelerate its plan of building 100 gigawatts of domestic solar capacity by 2028.
At the centre of the talks is Suzhou Maxwell Technologies, widely regarded as the global leader in this niche. The firm has already initiated regulatory steps with Chinese authorities to approve exports. Other contenders include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology, both of which are also being considered as potential suppliers.
Sources indicate that deliveries are expected before autumn, with much of the machinery likely headed to Tesla facilities in Texas. The equipment forms a critical part of Musk's broader strategy to localize energy production while scaling rapidly to meet rising electricity demand, particularly from AI infrastructure and data centers.
Musk has repeatedly argued that solar could power the entire U.S. grid, though achieving that vision requires massive industrial expansion. Tesla's internal hiring plans reinforce this ambition, referencing fully domestic solar manufacturing from raw materials within just a few years.
Yet the deal also highlights a contradiction in U.S. industrial policy. While Washington continues efforts to reduce reliance on China, key inputs, like solar manufacturing equipment, remain heavily dependent on Chinese expertise. Notably, such equipment has been exempted from tariffs since 2024, allowing companies like Tesla to proceed without major cost barriers.
The scale of the proposed order, estimated at 20 billion yuan, suggests Tesla is serious about execution. Still, challenges remain, from regulatory approvals to logistics and tight timelines.
If completed, the agreement would not only strengthen Tesla's energy division but also underline a broader reality: even as nations compete, clean energy supply chains remain deeply interconnected.
