Tesla is now running large-scale cathode production at Gigafactory Texas — the raw-material processing step that feeds directly into battery cells — making it one of the first plants of its kind operating at scale in North America.
What actually opened
The Austin American-Statesman reported that Tesla is now operating a cathode facility at Gigafactory Texas, processing the materials used to build battery cells rather than importing finished cathode material from overseas suppliers, which is how most automakers still source it. Tesla flagged the start of full-scale cathode production on its Q4 2025 earnings call on January 28, 2026. The facility is part of a roughly $776 million expansion of the Austin campus that Tesla filed plans for, and Teslarati reports the buildout includes a dedicated cathode plant alongside other new production space.
Why cathode material matters
Cathode is one of the most expensive and supply-constrained parts of an EV battery, and most of it is currently processed in China. Bringing that step in-house and onshore gives Tesla more control over cost and supply for its own cells, and reduces exposure to the kind of trade and tariff disruption that’s hit battery-material supply chains in recent years. It doesn’t change anything about the car you drive today, but over time it’s the kind of manufacturing move that affects battery cost and availability for future Tesla models.
Tesla posted this look inside the facility on August 21, 2026:
The video is Tesla’s own promotional look at the plant, not an independent inspection — for the production numbers and investment figures, the Statesman and Teslarati reporting above is the more complete record.
Photo by Heru Dharma.