Tesla is looking to buy equipment worth $2.9 billion for manufacturing solar panels and cells from Chinese suppliers including Suzhou Maxwell Technologies, two people familiar with the matter said, as CEO Elon Musk aims to add 100 gigawatts of solar capacity in the United States.
Musk said in January that solar power could meet all of the electricity needs of the United States – including the ever-increasing demand from a growing number of data centres. Job postings on the Tesla website said it aims to deploy 100 GW of “solar manufacturing from raw materials on American soil before the end of 2028”.
Suzhou Maxwell Technologies, the world’s largest maker of solar cell screen-printing equipment, is a leading contender to supply machinery and is seeking export approval from China’s commerce ministry, sources said.
Other potential suppliers include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology, the first two people said.
Some of the estimated 20 billion yuan ($2.9 billion) worth of equipment, including screen-printing production lines, will require export approval from Chinese regulators, according to the people.
The Chinese companies were told to deliver the equipment before this autumn, the three people said, with two saying it would be shipped to Texas. Musk plans to build the solar capacity mainly for use by Tesla, although some will be used to power SpaceX satellites, the people said.
The potential order highlights one issue for the United States as it looks to reduce its dependence on China – reviving U.S. manufacturing still requires some degree of trade with the world’s second-largest economy.
Chinese media reported last month that Tesla has visited several solar companies in China. The details of the companies in advanced talks, the estimated size of potential purchases, the delivery timeline, and regulatory requirements are reported here for the first time.
Shares in Suzhou Maxwell, S.C New Energy and Laplace Renewable jumped more than 7% after the Reuters story.
Tesla, China’s commerce ministry, Suzhou Maxwell, Shenzhen S.C New Energy and Laplace Renewable Energy did not respond to Reuters requests for comment.
US Gigaplant With Chinese Equipment
An order from Tesla would boost Chinese solar equipment makers hit by weak demand from a domestic glut.
The U.S. solar market is protected by tariffs on cheaper imports, but manufacturing equipment was exempted in 2024 and the exemption continues as Washington pushes to build its own supply chain.
Elon Musk has criticised tariffs for making solar deployment costly, even as U.S. power demand rises. His plans contrast with Donald Trump’s focus on fossil fuels and cuts to renewable subsidies.
The U.S. had about 1,300 GW power capacity in 2024, with only 10% from solar, highlighting the scale of expansion needed.
Despite efforts to localise, Tesla still relies on hundreds of Chinese suppliers, and past tariff hikes have disrupted component shipments.
(With inputs from Reuters)
