Tesla is making a big move in the world of grid-scale energy storage with the construction of a $220 million battery project in South Australia. This project, known as the Goyder North Battery, will be the first in the world to deploy Tesla’s innovative Megablock technology.
The Goyder North Battery, a massive 226 MW/866 MWh installation, is set to provide long-term renewable energy supply contracts for BHP’s Olympic Dam mining operations. What sets this project apart is the use of Tesla’s Megablock, a next-generation grid-scale battery architecture that combines four Megapack 3 units into a single plug-and-play block, delivering 20 MWh of usable AC energy. This innovative design includes its own transformer and switchgear, simplifying site design and construction and potentially cutting construction costs by up to 40%.
The Megablock is powered by Megapack 3 units, Tesla’s latest utility-scale energy storage solution. Each Megapack 3 can store 5 MWh of usable AC energy and features a redesigned thermal system inspired by the Model Y heat pump. With reduced cable connections and improved reliability, the Megapack 3 is designed for longevity, with a lifespan of over 25 years and more than 10,000 cycles.
Production of the Megapack 3 is set to begin in 2026 at Tesla’s upcoming Megafactory in Houston, Texas, with an expected annual capacity of up to 50 GWh. The batteries will also source cells from Tesla’s new 7 GWh LFP facility in Nevada.
Australia has emerged as a key market for Tesla Energy, with Megapacks already in use in several large-scale projects across the country. Globally, Tesla has secured major deals for utilities, wind farms, and AI data center infrastructure, showcasing the growing demand for grid-scale energy storage solutions.
With the deployment of Megablock technology, Tesla is accelerating its efforts to make grid-scale storage more affordable, faster to build, and easier to scale as renewable energy sources continue to gain traction worldwide. This groundbreaking project in South Australia marks a significant step towards a more sustainable and efficient energy future.