Energy
Tesla patents custom cooling system for longer-lasting energy storage devices
A significant part of Tesla’s business relies heavily on the durability and longevity of its battery packs, and in the spirit of disruptive innovation, the Silicon Valley-based company has continued to make improvements to its battery technology to make them more durable and more efficient. Tesla was able to achieve this through several ways, one of which was discussed in a recently published patent application.
It is pertinent for battery packs, particularly those that are used for energy storage, to be robust enough that they last for a very long time. To accomplish this, battery packs must be able to handle multiple charge and discharge cycles on a regular basis. They must also be able to weather faults in the system, including those that may cause damage to the actual cells in the pack itself.
Such a system was outlined by Tesla in a patent simply titled “Energy Storage System.” Explaining its rationale, the Silicon Valley-based company stated that “cells and other components in a pack generate heat during operation, both during the charging process to store the energy and during the discharge process when energy is consumed.” Tesla further explains that “when the cells fail, they typically release hot gases. These gases may impact the integrity of other cells in the pack and may cause substantial damage to the functional cells which have not failed.”
With this in mind, Tesla maintains that there is a need to develop an “improved energy storage system” that will be capable of reducing or removing “one or more of the issues mentioned.” Tesla’s patent describes two strategies that could improve its battery packs. One of these involves the use of a novel system that utilizes a cold plate, which could help remove heat generated by the battery pack during use. Heat pipes may also be used together with a cold plate to achieve this purpose.
“In certain embodiments, a cold plate (which provides liquid cooling) may be in thermal connection with the battery cells 100 to further remove heat generated during system use. The cold plate may be in direct thermal contact with the battery cells 100 or, alternatively, one or more layers and/or features may be between the cold plate and the battery cells 100. In certain embodiments, the battery cells 100 are in contact with one or more heat pipes to remove excess heat disposed under the battery cells. A cold plate is disposed below the heat pipe or pipes (on the side of the heat pipe away from the battery cells 100) that helps dissipate the heat contained in the heat pipe.”
“In certain embodiments, the cold plate may be in thermal contact with one side of the cells without any heat pipes disposed between the cells. The cold plate may physically consist of a single plate or multiple plates that are thermally connected to the cells and/or one another. In other embodiments, one or more heat pipes are disposed between the battery cells 100 and a cold plate is disposed below the battery cells 100. The heat pipes and the cold plate may be in thermal connection with one another.”
Apart from the use of cold plates, Tesla also described a battery pack with regions that are designed to give way when mechanical failures happen. By using such a system, the majority of the cells in a battery pack become protected even if some cells were to fail.
“The top plate includes one or more weak areas above the one or more battery cell. The weak areas are regions that have less integrity and thus, where mechanical failure is more likely to occur if a battery cell releases gas. These regions may be physically weaker areas compared to the surrounding areas and may rupture when pressure builds up due to a failed cell. Alternatively, the weak areas may be chemically weaker and preferentially rupture when exposed to the caustic gases released by a failed battery cell. The weak areas may also fail due to a combination of physical and chemical weakening.”
The full text of Tesla’s Energy Storage System patent could be accessed here.
Tesla’s focus on battery integrity in its recently published patent application suggests that the Silicon Valley-based company is looking to develop packs that are capable of lasting a very long time. Such improvements have been teased before, especially in a paper released by Tesla lead battery researcher Jeff Dahn and members of the Department of Physics and Atmospheric Science at Dalhousie University. The cells described in the paper are capable of lasting over 1 million miles on the road, or 20 years if used in grid energy storage.
Looking at these initiatives, as well as the battery pack contingencies outlined in the recently released patent, it appears that Tesla is building up towards creating an ecosystem of products that are capable of lasting decades. This, of course, plays a huge part in pushing Tesla’s overall goal of accelerating the advent of sustainable energy.
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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