Energy
Tesla Energy takes part in CA’s record-breaking 2.2 GWh battery storage project
Tesla Energy is poised to participate in California’s initiative to build one of the world’s largest battery systems. After a historic 4-1 vote, California utility regulators approved a proposal put forward by Pacific Gas & Electric, which aimed to replace three natural gas-fired power plants in the state with utility-grade lithium-ion batteries.
When completed, the projects approved by the California Public Utilities Commission (CPUC) would be among the largest battery installations in the United States. Among these is a 300 MW lithium-ion battery from Dynegy, as well as a 182.5 MW Tesla battery system. Installations from Hummingbird Energy Storage (75 MW) and mNOC (10MW) allow the entire clean energy initiative to reach a total of 567 MW. Considering that all the battery systems have four-hour ratings, the total energy rating of the entire project is an impressive 2.27 GWh.
Among the most notable gas-powered plants that would be replaced by the battery installations is a facility in Moss Landing, CA, located around 15 miles north of Monterey. All the battery systems, particularly Tesla’s 182.5 MW installation and Dynegy’s 300 MW battery, will be located on the site of the outgoing gas-powered plant.
Apart from being impressive in its size, the recently approved battery projects will not only connect to the area’s substation and transmission infrastructure built for the Moss Landing Power Plant; the lithium-ion batteries will replace the entire range of services provided by the plant itself as well. Dynegy, who owns the gas-powered plant, noted back in February that it would likely retire the facility. The CPUC has stated that another plant in Gilroy would probably go offline in the near future as well.
While the benefits of industry-grade batteries are notable, PG&E’s proposal met a notable amount of opposition nonetheless, particularly from gas generator Calpine, the California Direct Access Customer Coalition, and the California Community Choice Association. According to the project’s skeptics, the investment in the lithium-ion battery systems would not be a good use of taxpayer funds. Despite the opposition, though, the large-scale energy storage project was approved nonetheless.
With the project’s approval from the CPUC, California has managed to take a step forward in its efforts to decarbonize its electric system by shifting from natural gas to greener solutions. In a statement to GreenTechMedia, Matt Vespa, staff attorney at Earthjustice, stated that the upcoming battery installations would give several benefits to the state’s residents.
“Not only will this help California integrate solar and reduce the need to ramp up polluting gas plants in the late afternoon, but it will also provide local reliability needs in an area that is currently highly reliant on gas-fired generation. We are getting multiple benefits, pushing gas off the system, and moving a step closer to a decarbonized grid,” he said.
While Tesla’s Energy business usually takes a back seat to its electric car business, the company’s battery storage division continues to grow rapidly. Billionaire investor Ron Baron, for one, stated that he believes Tesla’s energy business could be worth $500 billion on its own by 2030. In a way, part of this projected growth is attributed to the declining price of batteries and the performance of projects such as the South Australia Powerpack farm, which has all but triggered a clean energy movement in the region. In a statement earlier this year, Tesla CTO JB Straubel remarked that battery technology has progressed to a point where it now has the potential to replace inefficient and dirty power plants.
“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” Straubel said.
The emergence of Tesla Energy at this point in time could bode well for the company, particularly since battery storage is expected to grow in the future. A study from GTM Research, for one, estimates that sales of energy storage for both residential and utility markets in America would probably hit $541 million this year, before passing $1 billion in 2019, and eventually reaching $4.6 billion in 2023. If Tesla Energy can ramp its operations in time, and if its batteries prove themselves in the field, the electric car maker could very well position itself strategically in what could, in more ways than one, be a clean energy gold rush.
Energy
Tesla Energy is the world’s top global battery storage system provider again
Tesla Energy captured 15% of the battery storage segment’s global market share in 2024.
Tesla Energy held its top position in the global battery energy storage system (BESS) integrator market for the second consecutive year, capturing 15% of global market share in 2024, as per Wood Mackenzie’s latest rankings.
Tesla Energy’s lead, however, is shrinking, as Chinese competitors like Sungrow are steadily increasing their global footprint, particularly in European markets.
Tesla Energy dominates in North America, but its lead is narrowing globally
Tesla Energy retained its leadership in the North American market with a commanding 39% share in 2024. Sungrow, though still ranked second in the region, saw its share drop from 17% to 10%. Powin took third place, even if the company itself filed for bankruptcy earlier this year, as noted in a Solar Power World report.
On the global stage, Tesla Energy’s lead over Sungrow shrank from four points in 2023 to just one in 2024, indicating intensifying competition. Chinese firm CRRC came in third worldwide with an 8% share.
Wood Mackenzie ranked vendors based on MWh shipments with recognized revenue in 2024. According to analyst Kevin Shang, “Competition among established BESS integrators remains incredibly intense. Seven of the top 10 vendors last year struggled to expand their market share, remaining either unchanged or declining.”
Chinese integrators surge in Europe, falter in U.S.
China’s influence on the BESS market continues to grow, with seven of the global top 10 BESS integrators now headquartered in the country. Chinese companies saw a 67% year-over-year increase in European market share, and four of the top 10 BESS vendors in Europe are now based in China. In contrast, Chinese companies’ market share in North America dropped more than 30%, from 23% to 16% amid Tesla Energy’s momentum and the Trump administration’s policies.
Wood Mackenzie noted that success in the global BESS space will hinge on companies’ ability to adapt to divergent regulations and geopolitical headwinds. “The global BESS integrator landscape is becoming increasingly complex, with regional trade policies and geopolitical tensions reshaping competitive dynamics,” Shang noted, pointing to Tesla’s maintained lead and the rapid ascent of Chinese rivals as signs of a shifting industry balance.
“While Tesla maintains its global leadership, the rapid rise of Chinese integrators in Europe and their dominance in emerging markets like the Middle East signals a fundamental shift in the industry. Success will increasingly depend on companies’ ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions,” the analyst added.
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.
Tesla creates clever solution to simplify and improve its Service
Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’
Tesla expands Robotaxi program in Austin to new riders
-
News2 weeks agoTesla hints a smaller pickup truck could be on the way
-
News2 weeks agoTesla is ready with a perfect counter to the end of US EV tax credits
-
Elon Musk2 weeks agoTesla gives a massive update on its affordable model plans
-
News1 week agoElon Musk highlights Tesla Model Y’s most underrated feature
-
Lifestyle1 week agoTesla brings perhaps the coolest interior feature to cars in latest update
-
Elon Musk2 weeks agoElon Musk reveals Tesla’s next Robotaxi expansion in more ways than one
-
Elon Musk2 weeks agoTesla exec gives big update on Roadster, confirming recent rumor
-
News2 weeks agoTesla’s new affordable Model Y details teased in new sighting