Tesla Seeks Regulatory Approval To Build A 'Giant New Facility' Next To Giga Texas

Tesla Inc TSLA has filed an application to build a “giant new facility” next to Giga Texas, likely to make cathode materials for battery manufacturing, Electrek reported on Thursday.

What Happened: Tesla’s building application mentions “industrial use facility” for a project codenamed Project Cathode spread on 32 acres.

The Elon Musk-led company has secured a 2,000 acre site next to Giga Texas, where it plans to deploy several key projects around the main factory, the report noted, adding that Tesla is not directly named in the application.

Instead, Michael Loftis, project manager at engineering firm Kimley-Horn, together with the firm — who have previously been named in the Giga Texas project — are listed as the main applicants for the latest project as well.

See Also: Elon Musk Says Tesla Will Host A 'Grand Opening Party' For Giga Texas

Site Details: Project Cathode is expected to come up on a parcel of land next to the Colorado River where Texas gigafactory is located.  

Tesla originally announced plans to build its own “cathode facility” during its “Battery Day” presentation in 2020.

The new building would extend Giga Texas on the eastern outskirts of Austin near the airport, adding that the application was submitted on Wednesday, Reuters reported.

An Austin city official confirmed to Reuters that the application is for a Tesla project and a cathode facility.

Giga Texas is expected to secure commercial start of production soon. Tesla expects the factory to significantly lift its capacity this year, especially when it achieves volume production in the second half.  

Price Action: Tesla shares closed 1.6% lower at $891.14 a share on Thursday. The stock is down 26% so far this year.