U.S. Board Authorizes Foreign-Trade-Zone Production at Tesla's Brookshire Megapack Plant
The U.S. Foreign-Trade Zones Board has authorized Tesla to make battery storage products under foreign-trade-zone procedures at its plant in Brookshire, Texas, near Houston. A Federal Register notice published on Nov. 2 says the board decided on Oct. 28 and limited the authorization to 14 months.
By the Tesla News Wire staff · Edited by Seamus McKenna · · 2 min read
Tesla's Megapack factory near Houston can now use foreign-trade-zone procedures for some of its production. That is according to a Federal Register notice published on Nov. 2.
What was approved
The Foreign-Trade Zones Board approved production activity for Tesla's battery storage products within FTZ 84 at Brookshire, Texas.
The board made the decision on Oct. 28.
The authorization is limited and runs for 14 months.
Why it matters
FTZ status lets a manufacturer delay, and sometimes reduce, customs duties on imported parts used in production. In its June notice, Tesla listed foreign components including battery cells and neodymium magnets. Tariffs on battery cells have become a major cost for U.S. energy storage makers.
The plant
Electrek reported in August that Megapack 3 production had started at the Texas site. The notice doesn't say how many units Tesla will build there.
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