Storage

Tesla unveils Megapack 3 and new Megablock that will slash construction costs by 40 pct

Published by

Tesla has unveiled its next-generation utility storage products, the Megapack 3 and the Megablock, which the company says will slash both installation times and construction costs.

The Megapack 3 pushes the system’s power capacity from 3.9 megawatt-hours (MWh) up to 5 MWh, incorporating a larger battery module and a new 2.8-litre lithium iron phosphate (LFP) cell.

The pre-engineered Megablock incorporates four Megapack 3 units with a transformer and switchgear to present a 20 MWh block that it says will reduce installation times by 23 per cent, and slash construction costs by 40 per cent.

The new products were announced on the sidelines of the RE+ renewable energy convention being held in Las Vegas this week.

Tesla says the new Megapack 3 builds on the products previous generation battery technology, using the same inverter and fire protection system, but boasts 78 per cent fewer connections and introduces a more streamlined thermal bay for heat dissipation, using the same heat pump as the company’s Model Y electric SUV.

The Megapack 3 weighs in at around 39 tonnes, with approximately 75 per cent of its mass consisting of battery cells and is designed to suit ambient operating temperatures anywhere between -40°C to 60°C.

The Megapack 3 has been optimised for up to 8-hour applications and improved accessibility and serviceability, featuring front access and no more roof penetrations.

Tesla expects to begin production of the Megapack 3 in late 2026 at its Houston Megafactory, which is currently under construction and expected to boast an annual manufacturing capacity of 50 gigawatt-hours (GWh).

Tesla says the Megablock has been designed for 20 MWh of storage, offering a 25-year lifespan, over 10,000 charging cycles, and a 91 per cent round-trip efficiency at medium voltage, inclusive of auxiliary loads.

It has the same operating conditions as the Megapack 3. Tesla says the Megablock will allow the commissioning of a battery installation with 1 GWh of energy storage in around 20 business days.

Want the latest clean energy news delivered straight to your inbox? Join more than 26,000 others and subscribe to our free daily newsletter.

Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.

Joshua S Hill

Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.

Share
Published by

Recent Posts

It needs to be more than big batteries: The triumphs and failures of Australia’s green energy transition

AEMO reports record number of newly commissioned projects in last fiscal year, but wind and…

20 July 2026

New data centre demand over next four years will be just a fraction of new home battery capacity

The increase in data centre demand is being overshadowed by the much larger increase in…

19 July 2026

Solar Insiders Podcast: Why new rules for networks signal a new dawn for consumers

AEMC commissioner Rainer Korte on what the new rules on reporting and data sharing will…

17 July 2026

Developer lands “complete funding package” to begin building state’s largest solar-battery hybrid

Developer says it is good to go on early works and construction of the largest…

17 July 2026

“A really big game-changer:” AEMO looks to battery inverters as syncons prove expensive and hard to find

AEMO says proof that grid forming battery inverters can deliver heartbeat of the grid will…

17 July 2026

Twiggy Forrest’s Squadron abandons plan for troubled New England wind farm

Days after lodging new plans for a more than 500 MW wind farm, Squadron dumps…

17 July 2026