Tesla has built the world's largest lithium-ion battery energy storage (ESS) in southern Australia. Samsung SDI supplies batteries for this project.
The South Australian government said that the Tesla Power Pack, the world's largest lithium-ion battery ESS, has been installed. The Tesla Power Pack was connected to the Hornsdale Wind Power Plant, operated by French renewable energy company Neo Ann. After the test runs for a few days, it is expected that regular operation will start from December as planned.
South Australia, which has a high percentage of renewable energy generation, pursued the ESS project after suffering massive power outages in the wake of the typhoon last year. Tesla has signed a contract to supply 100 megawatts (MW) / 129 megawatts (MWh) ESSs in July over the 90-1 competition.
The Tesla Power Pack stores electricity from the wind farm and supplies it during peak hours. When fully charged, it can supply 8,000 households for 24 hours and 30,000 households for 1 hour.
As Tesla pursued the world's largest ESS project, Samsung SDI was chosen not as a battery partner but as a long-time partner, Panasonic. Tesla is a joint venture between Panasonic and Giga Factory in the state of Nevada, USA, and is supplying the battery for electric vehicles from Panasonic.
In the industry, Samsung SDI sees opportunities as Panasonic focuses on the production of 'Model 3' batteries, which are experiencing supply and demand problems. CEO Ilren Musk Tesla promised to start operation within 100 days after the completion of the contract, and it was an analysis that he found a Korean company that could supply batteries quickly to meet this deadline.
Unlike other ESS companies that use square or pouch type mid-sized batteries, Tesla makes ESS packs with cylindrical cells just like their electric cars. Tesla received a cylindrical battery cell from Samsung SDI and was reported to be packaging for ESS from the US factory.
As TESLGA ESS is expanding its business and winning large global renewable energy projects, it can serve as an opportunity for domestic companies in the future.
"Although Samsung SDI and LG Chem are not supplying batteries for Tesla electric vehicles, we can get additional supply opportunities for ESS," said an official in the battery industry. "This project in Australia will prepare 21,700 cylindrical batteries faster than LG Chem Samsung SDI seems to have caught the opportunity first. "
Domestic maker Kokam, which had achieved the highest performance by building a 46MW ESS in Australia with the construction of the 100MW project, will be ranked first in Tesla.