According to two informed sources, Tesla Motors is seeking to procure solar panel and cell production equipment worth $29 billion from Chinese suppliers, including Suzhou Maxwell Technologies. Elon Musk's objective is to increase solar power capacity in the United States by 100 gigawatts. Musk stated in January that solar energy could meet all of the United States' electricity demands, including the growing needs from an increasing number of data centers. Recruitment notices on Tesla's website indicate a goal to "achieve 100 gigawatts of solar manufacturing deployment starting from raw materials within the United States by the end of 2028."
According to the two sources and a third individual, Suzhou Maxwell Technologies, the world's largest producer of solar cell screen printing equipment, is a primary candidate to supply equipment for the project and has been seeking export approval from China's Ministry of Commerce. The first two sources noted that other potential suppliers include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology. The sources revealed that part of the equipment, estimated to be worth 200 billion yuan (approximately $29 billion), including screen printing production lines, requires export permits from Chinese regulators. It remains unclear how much of the equipment needs approval or how long the process will take.
The three sources stated that the Chinese companies have been instructed to deliver the equipment by this autumn; two of them specified that the shipments are destined for Texas. The sources also disclosed that the solar capacity Musk plans to build will primarily be for Tesla's own use, with a portion allocated to power SpaceX satellites. This potential order highlights a challenge the United States faces while seeking to reduce its reliance on China: reviving domestic manufacturing still requires a degree of trade with the world's second-largest economy.
Reports last month in Chinese media indicated that Tesla had visited several solar companies in China. Details regarding the companies in advanced negotiations, the estimated scale of the potential procurement, the delivery timeline, and regulatory requirements are being reported for the first time. A U.S. gigafactory utilizing Chinese equipment would provide a significant boost for Chinese solar manufacturing equipment producers, who are struggling with domestic overcapacity and weak demand. Meanwhile, the U.S. solar market is highly protected by tariffs designed to curb imports of inexpensive components and cells from China and Southeast Asia, where many Chinese manufacturers have subsidiaries.
However, in 2024, the Biden administration, responding to requests from U.S. solar panel manufacturers, exempted solar manufacturing equipment from tariffs. These manufacturers argued they had no alternative sources for the machinery needed to establish domestic factories. The Trump administration continued this exemption policy. The U.S. has been pushing to build its own solar supply chain to reduce dependence on Chinese companies.
Musk has criticized tariff barriers for artificially inflating the economic cost of deploying solar power in the U.S., at a time when the country is facing severe electricity shortages driven by surging demand from AI data centers and manufacturing. His solar ambitions stand in stark contrast to the energy policies of President Trump, who seeks to maximize U.S. fossil fuel production and significantly cut federal subsidies for solar and wind projects, which he has labeled costly and unreliable. Musk briefly served in the Trump administration, leading the Department of Government Efficiency, which oversaw large-scale federal workforce reductions to cut costs.
According to the U.S. Energy Information Administration, U.S. electricity consumption hit a record high for the second consecutive year in 2025 and is projected to rise further in 2026 and 2027. Establishing 100 gigawatts of solar manufacturing capacity within a few years would be a remarkable feat. Musk is known for making ambitious promises on aggressive timelines, though these have often not been met as scheduled. A report released last year by the American Public Power Association stated that as of 2024, the total installed electricity generation capacity in the U.S. was 1,300 gigawatts, of which only 10%, or 135 gigawatts, was solar power.
Tesla has been pushing for greater localization of parts sourcing in different regions. However, to maintain low costs, it still relies on 400 Chinese suppliers. Sixty of these suppliers also provide components for Tesla's global operations, including its electric vehicle factories in the United States. Following the Trump administration's significant tariff hikes on Chinese goods, preparations for production of Tesla's Cybertruck and Semi models in the U.S. faced setbacks last year due to suspensions in component shipments from China.
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