SpaceX is expanding its energy ambitions beyond rockets. According to Bastrop County permit filings obtained by Bloomberg, SpaceX plans to build a 10-gigawatt solar manufacturing plant in Bastrop, Texas, near Austin. The facility will feature two production lines, each producing 5 GW of solar cells. The plant, exceeding one million square feet, is part of a broader expansion that doubles SpaceX's existing Bastrop site and also includes production of next-generation Starlink products. The expansion was detailed in the company's IPO prospectus released Wednesday.
Energy Backbone for Space-Based AI
Elon Musk stated at the World Economic Forum in January that solar power is key to solving AI infrastructure energy bottlenecks. He set an ambitious target: Tesla and SpaceX each build 100 GW of annual solar manufacturing capacity in the U.S. within three years — far exceeding current domestic output. Musk has previously warned that the U.S. could face an electricity shortage next year, arguing that energy supply, not computing power, is the biggest risk to AI development. The SpaceX solar factory directly supports his vision of moving AI computing into orbit, which requires massive renewable energy.
U.S. Solar Landscape and Trade War Context
The largest U.S. solar manufacturer today is First Solar, with about 14 GW annual capacity using thin-film technology. According to a report Thursday by the American Clean Power Association, total U.S. solar module manufacturing capacity exceeds 60 GW annually, but most relies on silicon cells made overseas. Only three domestic silicon cell factories are operational. High tariffs on solar imports from China and Southeast Asia, triggered by unfair trade complaints, explain why SpaceX and Tesla are building factories on home soil.
Tesla's Parallel Solar Push
Tesla is also ramping up. According to Electrek on May 19, Tesla posted multiple solar manufacturing job openings in Brookshire, near Houston, where it also plans to build Megapack batteries. Tesla CFO Vaibhav Taneja told investors in an April call that the company has started ordering solar manufacturing equipment. However, Chinese government intervention has led supplier Suzhou Maxwell Technologies to ban exports of advanced solar manufacturing equipment to Tesla. Musk hopes to resolve this during a recent trip to China with the Trump administration, but the outcome remains unclear.
Bastrop as Musk's Texas Hub
The Bastrop area is becoming a nexus for Musk's empire. This month, SpaceX applied for an enterprise zone certification for the plant, which would provide tax rebates. The region already hosts the Boring Company and xAI facilities, along with employee amenities like a supermarket, school, and company housing. Noah Cowles, SpaceX's director of solar production, posted on LinkedIn that the company is building "one of the most advanced solar cell factories globally" and is recruiting engineers for the site.