Tesla is reportedly in late-stage discussions with Chinese suppliers over a major order for solar manufacturing equipment, potentially worth about USD 2.9 billion. The move is part of its wider plan to expand solar production capacity within the United States.

People familiar with the matter suggest the company is aiming to build as much as 100 gigawatts of solar manufacturing capacity in the US by 2028. The equipment under discussion would be used to produce both solar cells and panels domestically, with some shipments possibly arriving before the end of the year.

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One of the companies in the frame is Suzhou Maxwell Technologies, known for its screen-printing systems used in solar cell production. It is understood that the firm has already approached Chinese authorities for export clearance. Others involved in talks include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology.

Not all of the equipment can be shipped freely. A chunk of the order-estimated at around Yuan 20 billion would need approval from Beijing before it leaves the country. How much of the deal falls into that category, and how long approvals might take, is still uncertain.

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The situation highlights a familiar tension. On the one hand, Washington has been pushing to bring clean energy manufacturing back home and reduce dependence on overseas supply chains. On the other hand, when it comes to specialised machinery, there are still very few alternatives to Chinese manufacturers. In fact, solar production equipment has largely been kept outside tariff regimes, simply because domestic options are limited.

The timing is also notable. Electricity demand in the US has been climbing, with data centres and artificial intelligence playing a growing role. Elon Musk has previously argued that solar could, in theory, meet the country’s full power needs over time. Any additional capacity would also feed into Tesla’s own operations, and could even support infrastructure linked to SpaceX.

The development is a reminder that the shift to cleaner energy isn’t happening in isolation. Supply chains remain global, even as governments try to localise production. Questions around trade policy, export controls, and geopolitical risk are now part of the equation for projects like this.

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