Energy
Tesla to support sleepy island’s aging infrastructure with back-up energy solution
Tesla will be supporting Nantucket’s aging back-up power system through the installation of a 48MWh Powerpack battery energy storage solution. The sleepy island town, located 30 miles off the coast of Massachusetts and approximately 100 miles from Boston, has become a popular summer destination in recent years and, as a result, experiencing significant increases in demand for electricity. While this would ordinarily be seen as positive news for Nantucket’s 10,000 residents, part of the island’s electrical infrastructure that’s nearing its end of life sees it differently.
Electricity flowing into Nantucket is supported by two undersea transmission lines that extend from the mainland near Cape Cod to the island. Two diesel generators that can each provide 3MW of power serve as a partial energy back-up solution in the event that one of the underwater transmission lines fail. Amid an increase in tourism on the island and expectation that the generators will need to be replaced within 12 years, utility company National Grid devised a plan that would demonstrate the region’s commitment to sustainability, while also provide a cost-effective and reliable back-up power solution for the years to come: install a battery energy storage system (BESS) by Tesla.
“National Grid explored several options to address these infrastructure needs and the ever-increasing on-island demand for electricity, and came up with a unique solution: the BESS and a new diesel generator that together can supply the island in the event of a cable failure. National Grid expects that with the BESS, the need for a third cable can be delayed for 15 to 20 years beyond the current 12-year forecast. The BESS will be six megawatts with an eight-hour duration, which is also described as a 48 megawatt-hour system, and is being provided by Tesla.” said the British electricity and gas utility company in a press release.
President and COO of National Grid’s FERC-regulated Businesses, Rudy Wynter, notes that the Tesla battery storage system will solve two of the island’s major energy issues. “The BESS provides a very efficient and effective solution to two major energy challenges facing the island. Our customers, communities, and policymakers look to us to deliver innovative solutions like this to help advance our clean energy future.” said Wynter.
The latest project follows a $4.7M total grant funded by the Department of Energy Resources earlier this year for companies to demonstrate innovation in peak electricity and gas demand reduction in Massachusetts. “Today’s grants will ensure that the Commonwealth remains at the forefront of energy innovation by utilizing emerging technologies to reduce peak energy usage,” said Lieutenant Governor of Massachusetts Karyn Polito in June.
One of the grants for $996,455 was awarded to California-based Tesla, and called for a project that would demonstrate aggregated energy storage for peak demand reduction in a National Grid territory. “Tesla will work to quantify the benefits of the demonstrated peak demand reductions and evaluate the model’s viability at scale.”
Tesla’s upcoming 48 MWh Powerpack battery system in Nantucket will ensure that back-up power is in place, but also support the island’s near and long-term energy needs. The project is one one of several National Grid battery systems that are aimed at accelerating progress toward a sustainable future.
Elon Musk
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
What began as an open secret in the energy industry was confirmed by the U.S. Department of the Interior on Monday: Tesla is the buyer behind LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
What began as an open secret in the energy industry is becoming more real after the U.S. Department of the Interior named Tesla as the stakeholder in the LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
Tesla and LG Energy Solution are expanding their partnership to build a LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027. The announcement, made as part of the Indo-Pacific Energy Security Summit results, ends months of speculation.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain.”, notes a press release on the U.S. Department of the Interior website.
Tesla has long utilized China’s Contemporary Amperex Technology Co. (CATL), the world’s largest LFP battery maker, as one of its primary suppliers. That relationship made financial sense for years, considering that Chinese LFP cells were cheap, abundant, and reliable. But with escalated tariffs on Chinese imports and an increasingly growing Tesla Energy business that’s particularly reliant on LFP cells for products including its Megapack battery storage units designed for utilities and large-scale commercial projects.
The announcement of a deepened partnership between LG Energy Solution and Tesla has strategic logic for both parties. For Tesla, it secures a tariff-compliant, domestically produced battery supply for its fast-growing energy division. LGES, now producing LFP batteries in Michigan, becomes the only major supplier currently scaling U.S. production, outpacing rivals like Samsung SDI and SK On. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site, with a production capacity of 50 GWh per year. LG Energy said the contract includes options to extend the supply period by up to seven years and boost volumes based on further consultations.
For the broader industry, the ripple effects are significant. This deal signals that domestic battery manufacturing can be financially viable and not just aspirational. Utilities, energy developers, and rival automakers will take note as American-made LFP supply becomes a competitive reality rather than a distant promise.
For consumers, the benefits will take time but are real. A more resilient, U.S.-based supply chain means fewer price shocks from trade disputes, more stable Megapack availability for the grid storage projects that reduce electricity costs, and long-term downward pressure on energy storage prices as domestic production scales.
Deliveries are set to begin in 2027 and run through mid-2030, and as grid storage demand accelerates, reliable, US-made battery supply is no longer a future ambition. It is becoming a core requirement of the country’s energy strategy.
Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
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