

Energy
Tesla’s success in Australia opens up opportunity for 2nd big battery project in country
Following Tesla’s successful deployment of the world’s largest battery in South Australia, carrying out CEO Elon Musk’s 100-day target to install a grid-scale Powerpack battery unit, or the system would be free, another state in the land down under has lined up as Tesla Energy’s next customer. As noted in a recent report from the Sydney Morning Herald, Victoria has joined South Australia in its push towards a large-scale renewable energy system.
Tesla’s South Australia Powerpack facility currently stands as the largest lithium-ion battery of its kind on the planet. Powered by clean energy from Neoen’s Hornsdale Wind Farm near Jamestown, the mammoth 100 MW/129 MWh battery is capable of powering up to 30,000 homes during blackout periods.
According to the Australian Energy Market Operator (AEMO), the Powerpack system in SA has already proven itself multiple times since it was completed, providing ample backup power and other grid services hundreds of times in December 2017 alone. More notably, Tesla’s energy system recently supplied emergency power to one of Australia’s biggest coal-fired power stations after it experienced an unexpected loss of power on December 14.
The notable success of Tesla’s South Australia facility seems to be a significant driving force for the state of Victoria, which ultimately decided to pursue a contract with the California-based electric carmaker and energy firm to install its very own Powerpack system. Victoria’s batteries would be installed in Bulgana, though at 20 MW, the system would only be 1/5th the size of South Australia’s facility.
Franck Woitiez, managing director of Neoen, a French energy firm and Tesla’s partner in the SA Powerpack system, is optimistic about the potential of Victoria’s batteries. According to the Neoen executive, the Bulgana Powerpack system might even be enough to provide adequate support for the area’s power grids in the near future.
“The performance of the South Australian battery is outstanding. The Bulgana battery is primarily going to provide energy to Nectar Farms and may support the grid in the future,” he said, according to a SMH report.

Tesla’s 100 MW/129 MWh Powerpack system dubbed as the ‘World’s largest battery’ in Jamestown, Australia
Energy officials in Victoria are also equally excited about Tesla’s upcoming Powerpack system. According to energy minister Lily D’Ambrosio, the Elon Musk-led energy company’s forthcoming project would play a vital role in Victoria’s pursuit of renewable energy.
“(The agreement is) a major step forward for communities, businesses and the renewable energy industry. This project will reduce greenhouse gas emissions while helping meet Victoria’s renewable energy generation targets,” the energy minister said.
John Grimes, head of the Smart Energy Council, further stated that the clean energy initiatives of South Australia, and now Victoria, are but the beginning. Grimes also said that 2018 might very well be a pivotal year for renewable energy.
“What we’re seeing with the South Australian battery, what we’re seeing in Victoria, is really the tip of the iceberg for a pipeline of projects that’s coming along. This is a breakout year for energy storage.”
Tesla’s South Australian Powerpack system initially captured the public’s eye after Elon Musk and fellow billionaire Mike Cannon-Brookes, who co-founded Atlassian, conducted a friendly wager on Twitter. During the two billionaires’ Twitter exchange, Musk raised the stakes of the bet by declaring that Tesla would build a working Powerpack system for SA in 100 days or it would be free. Not long after, South Australia became home to Tesla’s largest lithium-ion battery system in the world.
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.
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