A Korea-based supplier for Tesla has received approval to construct a $28 million facility in Texas, close to Tesla’s Gigafactory in Travis County.
This week, Buda, Texas city councilmembers approved Futronic, a Tesla supplier from Korea, to establish its first U.S. location in the city. According to the Austin Business Journal, the city granted the company $600,000 in tax incentives, complemented by further incentives from the Hays County Commissioners Court.
Futronic plans to acquire a 66,000-square-foot building at 2899 Business Park Drive in Buda, which previously housed Fat Quarter Shop LLC, as reported by the Greater San Marcos Partnership. The facility is roughly a 20-minute drive from Giga Texas and is anticipated to create up to 350 jobs in the area.
The total investment from Futronic is projected to be $17 million, including the purchase of the building, which is valued at approximately $11 million, according to the report.
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“Buda boasts a skilled workforce, with strong career and technical education (CTE) programs from its school district, making this a valuable addition to our economy, families, and future generations,” remarked Shannon Mumley, Assistant Director of the Buda Economic Development Corp. (BEDC).
Futronic specializes in manufacturing actuators, motors, and various control devices for automotive companies worldwide, as noted on the company’s website. Though most of Tesla’s suppliers operate under strict non-disclosure agreements (NDAs), the Greater San Marcos Partnership confirmed Futronic as a supplier to Tesla.
Several Tesla suppliers have recently announced U.S. projects, including Piedmont Lithium’s approved plan in North Carolina for constructing a lithium mining facility.
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This new facility underscores the growing trend of EV suppliers establishing a presence in the U.S. market. With benefits extending beyond job creation, such initiatives promise significant contributions to local economies and further cement the nation’s role in the evolving electric vehicle landscape.
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William Kouch, Editor of Automotive.fyi
