Tesla’s next big push into grid-scale energy storage is officially leaving the lab and heading into the real world. Construction has begun on a new $220 million battery project in South Australia, which will also mark the first deployment anywhere on the planet of Tesla’s new Megablock technology, according to Renew Economy.
Australian renewables giant Neoen confirmed it has broken ground on the Goyder North Battery, a massive 226 MW/866 MWh installation that will underpin long-term renewable energy supply contracts for BHP’s Olympic Dam mining operations. While the project itself is significant, the real headline is its use of Tesla’s Megablock, the company’s next-generation grid-scale battery architecture unveiled earlier this year.
Tesla’s Megablock combines four Megapack 3 units into a single pre-engineered, plug-and-play block delivering 20 MWh of usable AC energy. Each block includes its own transformer and switchgear, dramatically simplifying site design and construction. Tesla claims Megablock installations can be completed up to 23% faster while cutting construction costs by as much as 40%, a meaningful leap for large battery energy storage systems (BESS).
The Megablock consists of Megapack 3 units, the latest iteration of Tesla’s flagship utility-scale energy storage solution. Each Megapack 3 stores 5 MWh of usable AC energy and features a redesigned thermal system inspired by the Model Y heat pump, but scaled up for industrial use. Tesla has reduced cable connections from 24 in the previous generation to just three busbar connections, minimizing failure points and improving long-term reliability. The system uses LFP battery chemistry, operates in temperatures ranging from -40°C to 60°C, and is rated for more than 10,000 cycles over a 25-year lifespan.
Tesla says Megapack 3 production will begin in 2026 at its upcoming Megafactory in Houston, Texas, which is expected to deliver up to 50 GWh of annual capacity. Some battery cells will also come from Tesla’s new 7 GWh LFP facility in Nevada.
Australia has become one of Tesla Energy’s strongest markets, with Megapacks already deployed across multiple large-scale projects. The company continues to secure major deals globally, including recent large orders for utilities, wind farms, and even AI data center infrastructure. With Megablock now entering real-world deployment, Tesla appears to be accelerating its push to make grid-scale storage cheaper, faster to build, and easier to scale as renewables penetration climbs worldwide.
