Tesla has unveiled two new energy storage products: Megapack 3, the latest generation of its utility-scale energy storage system, and Megablock, which integrates Megapack 3 with transformers and switchgear.
At an event in Las Vegas on the margins of the RE+ renewable energy convention, Tesla unveiled its latest generation of large-scale energy storage products.
As expected, Tesla unveiled Megapack 3, the latest generation of its biggest stationary energy storage battery system.
The company is now using bigger 2.8-liter battery cells, resulting in a higher energy capacity: roughly 5 MWh compared to 3.9 MWh for Megpack 2.
Tesla also significantly simplified the thermal bay, reducing the number of connections by 78%.
However, the more significant product unveiled by Tesla today is the Megablock, which combines four Megapack 3s directly connected to a megavolt transformer and switchgear.
This is what it looks like:
Tesla claims 23% faster installation time with more of the assembly being done in a factory setting rather than on-site.
Mike Snyder, Tesla’s VP of energy and charging, claimed that Tesla can deploy 1 GWh in 20 business days with this new Megablock configuration.
The company also claims a higher energy density at the site: 248 MWh per acre.
Snyder said that Tesla plans to build Megapack 3 in Houston starting in late 2026. We learned in March that Tesla was building a new Megafactory in Houston.
The energy executive stated that the factory would have a capacity of 50 gigawatt-hours (GWh) per year.
Electrek’s Take
This sounds like a strong incremental improvement to an already popular energy storage product.
However, the new battery cells are probably the biggest part of the improvement and Tesla doesn’t manufacture those.
In fact, Tesla’s battery cell suppliers BYD and CATL, both have battery systems that compete with Tesla’s Megapack, which could prove problematic for Tesla in the near future.
I think Tesla’s strongest energy storage product is probably its Autobidder software. It optimizes energy storage products like nothing else. It would do well to keep licensing this to other energy storage systems.
Tesla’s next biggest advantage is the complete integration of energy storage, power electronics, software, and service. It makes for an attractive turnkey solutions for utilities and large-scale projects, like AI data centers.
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