Tesla looks to China for solar buildout despite U.S. supply chain push.SummaryTesla in talks to buy $2.9B of solar manufacturing equipment from ChinaAims to build 100 GW of U.S. solar production capacity by 2028Suzhou Maxwell among leading suppliers; others also in discussionsSome equipment requires Chinese export approvalHighlights reliance on Chinese manufacturing technologySolar equipment exempt from U.S. tariffs due to limited alternativesProject tied to rising U.S. power demand, including AI data centresMusk sees solar as key to meeting long-term energy needsReflects tension between reshoring and global supply chainsEnergy transition increasingly shaped by geopolitics and policyTesla is in advanced discussions to purchase around $2.9 billion worth of solar manufacturing equipment from Chinese suppliers, as part of an ambitious push to expand U.S.-based solar production capacity. Credit: Reuters.The planned investment would support Tesla’s goal of building up to 100 gigawatts of solar manufacturing capacity in the United States by 2028, according to sources familiar with the matter. The equipment is expected to be used to produce solar panels and cells domestically, with shipments potentially beginning as early as this year.Chinese firms including Suzhou Maxwell Technologies are among the leading candidates to supply the machinery. Maxwell, a major producer of screen-printing equipment used in solar cell manufacturing, has reportedly sought export approval from Chinese regulators to fulfil the order. Other companies in discussions include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology.Some of the equipment, estimated at roughly 20 billion yuan, would require clearance from Beijing before export, highlighting the continued regulatory and geopolitical complexities surrounding cross-border technology flows. It remains unclear how much of the order would need approval or how long the process could take.The project underscores a broader tension in U.S. industrial policy. While Washington is seeking to reduce dependence on Chinese supply chains and promote domestic clean energy manufacturing, key inputs, particularly specialised equipment, remain heavily reliant on Chinese producers. Solar manufacturing equipment has been exempted from tariffs, reflecting limited alternatives for U.S. firms looking to scale production.Tesla’s planned expansion comes amid surging U.S. electricity demand, driven in part by the rapid growth of artificial intelligence and data centres. CEO Elon Musk has argued that solar power could eventually meet the country’s full electricity needs, with the proposed capacity also expected to support Tesla’s operations and potentially power SpaceX infrastructure.The move also highlights the growing importance of energy security and supply chain resilience in the transition to renewable energy. Despite efforts to localise production, global interdependencies remain deeply embedded, particularly in critical manufacturing technologies.More broadly, the development illustrates how industrial policy, geopolitics and energy transition dynamics are increasingly intersecting. Trade restrictions, export controls and strategic competition are shaping investment decisions, even as companies accelerate efforts to build domestic capacity in key sectors. This article was written by Eamonn Sheridan at investinglive.com.