Energy
Tesla Powerwall advocates fight proposed ban on in-home lithium ion battery storage systems in Australia
Battery storage systems are exceedingly popular in Australia, which has some of the highest energy costs in the world. Battery storage systems like the Tesla Powerwall are seen as the answer to high electricity costs when coupled with a rooftop solar installation. There are currently 1.6 million homes in Australia with rooftop solar and the majority of those home owners say they are interested in adding battery storage to help them reduce the amount of electricity they draw from the grid.
On February 13, a report leaked in the Australian press saying that Standards Australia, a non-governmental group similar to Underwriters Laboratories, was about to recommend that any storage devices using lithium ion cells not be installed inside homes but rather in free standing kiosks or bunkers added to the exterior of buildings.
According to Australia’s RenewEconomy, the new standard would add thousands of dollars to the price of a complete solar power system and imperil what is considered to be a multi-billion dollar business opportunity. Bloomberg New Energy Finance believes there could be as many as 6 million residential storage battery installations in Australia in the next 15 years.
The leaked report created a whirlwind of protest. No other country has such restrictions on storage battery installations. John Grimes, head of the Australian Solar Council, says that other countries like Japan and the United States do not have bans on lithium ion storage batteries in homes. He adds that there are already 30,000 such devices in Germany, where lithium ion devices are banned only in sleeping areas.
Apparently Standards Australia grew concerned when reports surfaced that the Samsung Galaxy Note had a disturbing tendency to burst into flames. That device has now been banned from all commercial aircraft whether in carry on or checked luggage.
The proposed rules could have a devastating effect on a virtual power plant program being promoted by AGL Energy in South Australia. That concept would link up to 1000 home solar systems together with a sophisticated digital control network designed to manage each system remotely and maximize the efficiency of the entire microgrid.
Australia is ripe for solar power development because of the abundance of sunshine it receives every day. In fact, there is already a planned community near Melbourne, Australia that has been dubbed Tesla Town because every house has a rooftop solar system mated to a Tesla Powerwall storage battery. Prime Minister Malcolm Turnbull is one of those Australians who has a 14.5 kW rooftop solar and battery storage system installed at his home.
Suburb dubbed “Tesla town” in Australia will have solar, Tesla’s Powerwall and EV charging in every home.
Some people have expressed concerns that owners of electric cars with lithium ion batteries such as the Tesla Model S and Model X might be prevented from parking their cars in their garages if the Standards Australia rules are adopted.
LG Chem and Tesla are the two leading storage battery suppliers in Australia. Both use lithium ion battery cells, as do the products from Sony, GCL, BYD, Panasonic and Samsung. Companies that offer storage batteries that do not use lithium ion cells include Sonnenbatterie and Enphase (lithium iron phosphate batteries), Astralia’s Redflow (zinc bromine flow batteries), Ecoult (lead acid batteries), and Aquion, which uses ionically charged water molecules as its storage medium.
The storm of complaints has forced Standards Australia to rethink its position even before its new rules were officially announced. On February 14, it released a statement denying it is proposing a ban on lithium ion batteries in homes. It said that the public discussion period for its proposed rules would now begin in April instead of later this month and would extend for 9 weeks instead of the usual 6.
“Standards Australia is working with stakeholders to develop a new draft Australian Standard AS/NZS 5139, Electrical Installations –Safety of battery systems for use in inverter energy systems that will enable the safe installation of battery energy storage systems,” the organization said in a statement. “It is proposed that the draft document will contain provisions for:
- Installation requirements for all battery systems connected to inverter energy systems, covering all battery types
- Mitigating hazards associated with battery energy storage system installations
- Classifying batteries based on hazards, and not chemistry type
Those are reasonable and sensible proposals, considering that Australia currently has no national standards governing the installation of residential solar systems, which leaves consumers open to shoddy work by poorly trained contractors. The best defense against charlatans is to let Tesla manage the entire process. It uses only trained, certified installers and stands behind each installation with its reputation for quality and customer service.
Interested in solar? Get a solar cost estimate and find out how much a solar system would cost for your home or business.
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.
Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
Energy
Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe
The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack.
Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery.
The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system.
New Tesla Megapack Milestone
As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.
To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.
Quick Megafactory Ramp
The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.
Energy
Tesla launches first Virtual Power Plant in UK – get paid to use solar
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.
Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.
The company states that those who enroll in the program can earn up to £300 per month.
Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.
This is its first in the UK:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.
It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.
Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.
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