Tesla Gets Green Light to Make Megapacks at Texas FTZ 84

FTZ News: The Foreign-Trade Zones Board has authorized Tesla to conduct production activity for battery storage products and components at its facility in Brookshire, Texas, according to a notice published Monday.

Tesla submitted the notification on May 20 for its site within Subzone 84AM of Foreign-Trade Zone 84. After a public comment period, the Board notified the company on Oct. 28 that no further review was warranted at this time. The activity was authorized on a limited basis for 14 months, subject to the FTZ Act and the Board’s regulations.

The proposed finished products include Megapacks and Bento Inverters. Foreign-status materials and components listed in the earlier notification include battery cells, power transformers, static inverters, printed circuit boards, and various thermal and structural parts.

Under FTZ production procedures, companies can generally defer or reduce duties on imported inputs used in authorized manufacturing or assembly. The authorization is limited to the specific products and components described in Tesla’s filing.

The Brookshire site is part of Tesla’s expansion of its utility-scale energy storage manufacturing. The Board’s action does not itself set production volumes or duty rates./.