Tesla plans massive solar manufacturing push with proposed $2.9 billion China deal
The Chronify
Tesla is in talks to buy about 20 billion yuan, or roughly $2.9 billion, worth of solar manufacturing equipment from Chinese suppliers as Elon Musk pushes a major expansion of solar panel and cell production in the United States, according to people familiar with the matter. The companies linked to the discussions include Suzhou Maxwell Technologies, Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology.
The proposed purchase is tied to Tesla’s goal of deploying 100 gigawatts of “solar manufacturing from raw materials on American soil before the end of 2028,” a target described in current job postings on the company’s careers site. Musk has also argued this year that solar power could meet all US electricity demand, including rising consumption from data centres.
People familiar with the negotiations said some of the equipment, including screen printing production lines used in solar cell manufacturing, would require export approval from Chinese regulators. Suzhou Maxwell, described as the world’s largest producer of screen printing equipment for solar cells, is among the leading candidates to supply the machinery. The same sources said the suppliers were asked to deliver before autumn, with at least part of the shipment expected to go to Texas.
The talks highlight a difficult reality for Washington’s industrial policy. Even as the United States tries to cut reliance on Chinese clean energy supply chains, key solar manufacturing equipment still appears to be sourced heavily from China. The reported deal would also give a lift to Chinese solar equipment makers, which have been under pressure from weaker domestic demand and overcapacity.
The timing also matters because US electricity demand is climbing again. Federal forecasts say US power use hit a record in 2025 and is expected to rise further in 2026 and 2027, driven in part by AI and crypto data centres and broader electrification. That backdrop helps explain why Tesla is pushing such an aggressive solar manufacturing buildout.
If completed, the order would be one of the clearest examples yet of how the US clean energy buildout still depends on Chinese industrial capacity, even as trade barriers remain in place for many finished solar products. It would also mark a significant expansion of Tesla’s energy business at a time when the company is trying to deepen its footprint beyond electric vehicles.
People familiar with the negotiations said some of the equipment, including screen printing production lines used in solar cell manufacturing, would require export approval from Chinese regulators. Suzhou Maxwell, described as the world’s largest producer of screen printing equipment for solar cells, is among the leading candidates to supply the machinery. The same sources said the suppliers were asked to deliver before autumn, with at least part of the shipment expected to go to Texas.
The talks highlight a difficult reality for Washington’s industrial policy. Even as the United States tries to cut reliance on Chinese clean energy supply chains, key solar manufacturing equipment still appears to be sourced heavily from China. The reported deal would also give a lift to Chinese solar equipment makers, which have been under pressure from weaker domestic demand and overcapacity.
The timing also matters because US electricity demand is climbing again. Federal forecasts say US power use hit a record in 2025 and is expected to rise further in 2026 and 2027, driven in part by AI and crypto data centres and broader electrification. That backdrop helps explain why Tesla is pushing such an aggressive solar manufacturing buildout.
If completed, the order would be one of the clearest examples yet of how the US clean energy buildout still depends on Chinese industrial capacity, even as trade barriers remain in place for many finished solar products. It would also mark a significant expansion of Tesla’s energy business at a time when the company is trying to deepen its footprint beyond electric vehicles.
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