Tesla has announced its third-generation Megapack battery storage system, which boasts a capacity of 12.5 GWh. This new product is set to begin deliveries in the first half of 2025. On October 3, 2025, Tesla shared details about the upcoming third-generation Megapack during a presentation.
According to the announcement, the 12.5 GWh capacity will contribute to a total of 32.5 GWh of energy storage planned for this year. Tesla’s Shanghai Gigafactory has been ramping up production capabilities, and the company aims to enhance its energy storage output significantly. The new production model, Megapack 2 XL, is targeted at achieving an annual production of 100,000 units and a storage capacity nearing 40 GWh.
The Shanghai Gigafactory is crucial for Tesla’s energy storage production and export capabilities. It is also a key manufacturing base for the Megapack series, which is expected to drive Tesla’s energy storage output to reach 80 GWh annually by 2026.
On June 20, 2023, during the Shanghai New Energy Conference, Tesla unveiled its new generation of energy storage products, Megapack 3 and Megablock. The Megapack 3 is designed for commercial applications, utilizing advanced lithium iron phosphate (LFP) battery technology, which increases storage capacity from 3.9 MWh to 5 MWh.
Tesla is also implementing new safety and maintenance designs in its energy storage systems, which will enhance ease of use and reliability. The Megablock is designed for large-scale energy projects, integrating several Megapack 3 units directly with grid-level inverters for efficient energy management.
Each Megablock will have a capacity of up to 20 MWh with a lifespan of 25 years and can undergo over 1 million cycles while maintaining a return on investment of 91%. Tesla aims to address the increasing demand for energy storage solutions, especially in the wake of growing energy transition efforts across the globe.
As of now, Tesla’s energy storage division has achieved a total of 20 GWh in capacity, marking an increase of 48% compared to the previous year. According to a report released by Wood Mackenzie in August 2023, Tesla is expected to hold a 15% market share in the energy storage sector by 2024.
In the competitive landscape, Tesla’s energy storage products are positioned to lead the market, with solar energy applications projected to make up a significant portion of their future sales. Tesla’s continuous innovation in battery technology and energy solutions is set to redefine energy storage capabilities.
For further insights, you can explore Tesla’s energy storage solutions on their official site.
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