October 10, 2025

Austin Emerges as a Battery Manufacturing Hub

News Summary

Austin is on the verge of becoming a key player in battery manufacturing thanks to Base Power’s recent $1 billion investment. Co-founded by Zach Dell, the company aims to produce large batteries for residential use, with plans for an expansive production facility in the city. With significant backing from notable investors, Base Power intends to create local energy storage solutions and expand its workforce. Positioned strategically along Lady Bird Lake, the startup is set to transform Texas’ energy landscape through innovative technology and domestic manufacturing.

Texas

Austin-based battery and energy startup Base Power has successfully raised $1 billion in a Series C funding round, demonstrating its rapid growth and ambition in the energy marketplace. The fundraising, which attracted investments from prominent venture capital firms such as Andreessen Horowitz, Valor Equity Partners, and Elad Gil, positions the company to substantially increase its manufacturing capabilities in Texas.

Founded in 2023 by Zach Dell, the son of Michael Dell, Base Power has quickly become a significant player in Texas’ energy sector. To facilitate its operations, the company has leased a 55,000-square-foot section of the former Austin American-Statesman complex, where it will establish a temporary production facility. This site is strategically located along Lady Bird Lake, close to downtown Austin, and will serve as a basis for scaling operations as the company prepares to build a second manufacturing site in the near future.

The primary mission of Base Power is to increase domestic manufacturing capacity to effectively “fix the grid.” The startup specializes in producing large-scale batteries for residential backup power systems. These systems are designed to support homeowners during severe weather events and peak demand periods when the electricity supply is strained. As part of its service, Base Power sells electricity at fixed rates, sourcing it at times when prices are low to charge its batteries.

To date, Base Power has successfully deployed over 100 megawatt-hours of energy capacity across residential homes in Austin, Houston, and the Dallas-Fort Worth metro areas. This energy capacity is sufficient to power around 25,000 Texas homes for one hour, highlighting the company’s significant contribution to energy reliability in the region.

Zach Dell has articulated the company’s vision to reshape Texas’ electricity market, identifying this initiative as a high-stakes opportunity in the evolving energy landscape. This vision is supported by a talented workforce, which includes engineers who have previously worked with leading corporations such as SpaceX and Tesla. As the company ramps up production, it aims to employ 100 to 150 people at its new facility.

Base Power initially outsourced its battery production but plans to bring these operations in-house, signaling its commitment to increasing local manufacturing capacity. The company aims to have the new manufacturing facility operational within the next 18 to 24 months, a timeline that will allow for significant scaling of production capabilities.

Following a previous funding round in April, Base Power was valued at approximately $4 billion, reflecting investor confidence in its future prospects. The recent Series C funding will aid in advancing its expansion plans and enhancing its technology to create reliable and affordable electricity through advanced battery solutions.

The lease agreement for the former American-Statesman site comes amidst ongoing redevelopment efforts by the Cox family, previous newspaper owners, who are looking to transform the area into a mixed-use project. However, those redevelopment plans have encountered legal challenges, allowing Base Power to secure a temporary foothold in the location for its operations.

As Base Power continues to grow, it remains dedicated to its mission of delivering innovative energy solutions that help stabilize the Texas electricity grid. With substantial backing from distinguished investors, the company’s trajectory suggests it will play a crucial role in shaping the future of energy in Texas.

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Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.