Tesla's Battery Day event Sept. 22. (Tesla)

Tesla plans to operate a cell-manufacturing unit to produce the battery packs that power its cars at its Austin factory, according to filings with the Texas Commission on Environmental Quality.


It's unclear whether the electric carmaker intends to make the cells at its forthcoming 2,100-acre Gigafactory in Southeast Travis County or the adjacent 381-acre plot it recently purchased, as reported by the Austin Business Journal.

Tesla executives announced the company will begin producing a new "tabless" battery in-house for its cost benefits and energy improvements at its Sept. 22 Battery Day event.

The company currently sources its batteries from Panasonic, where cell shortages have led to production delays for Tesla.

CEO Elon Musk and other executives said this new battery product will eventually halve the company's cost per kilowatt-hour, the unit of energy commonly used to measure the capacity of electric vehicle battery packs, and enable the production of an affordable, autonomous electric vehicle in three years' time.

Construction is well underway at the Austin Gigafactory site, which is near the intersection of SH 130 and SH 71.

The first substantial completion, or construction milestone, is scheduled for the spring with the full factory expected to be up and running by the end of 2021.

New Tesla Gigafactory site in Austin, Texas - YouTube www.youtube.com

As proposed, the factory will provide at least 5,000 jobs, not including the thousands of construction workers who will build the facility.

In addition to batteries, the Gigafactory will also produce its Cybertruck pickup and Model Y SUV.

There has also been chatter that Tesla may consider relocating its headquarters to Texas from California, where Musk has clashed with county officials over coronavirus orders.

Musk announced Austin would be home to the next Gigafactory in late July, after a competitive selection process that saw Del Valle ISD and Travis County offer the company tax rebates for building the factory in their jurisdictions.


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(Anna Moneymaker/Pool via REUTERS)

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