Tesla’s supply of Megapack lithium batteries has skyrocketed – renewable energy is wasting money

For Tesla electric vehicles, 2024 was the first failure year in many years – annual deliveries of electric cars decreased for the first time. However, the company saw a sharp increase in shipments of Megapack and Powerwall battery kits, showing growth for the second year in a row. This will partially compensate for Tesla’s failures in the electric vehicle market. Battery systems for energy bring the company up to 10% of revenue and are becoming increasingly important in its business.

Image source: Tesla

There are about three weeks left until Tesla’s next quarterly and annual report. However, the company has already shared good news: in 2024, it delivered energy storage devices using lithium batteries with a total capacity of 31.4 GWh. The announcement comes alongside the announcement of the launch of a new Megapack kit manufacturing facility in Shanghai, China. Previously, industrial Megapack battery kits and home Powerwalls were produced only in the USA at a plant in Lathrop (California), where the capacity is 10 thousand Megapacks per year.

A sharp increase in sales of Megapack kits began in 2023, when batteries with a total capacity of 14.7 GWh were delivered to customers. In 2024, sales grew by 214%, corresponding to shipments of batteries with a capacity of 31.4 GWh – more than twice as much. Australia remains one of Tesla’s leading clients, actively using solar energy in its desert regions.

Before the publication of financial results for the fourth quarter and the whole of 2024, it is known that one of Tesla’s largest revenues from sales of battery kits was recorded in the third quarter of last year and amounted to $2.38 billion, or 9.4% of the company’s total revenue for that period. As the world continues to expand its renewable energy capacity, the need for Tesla’s Megapack battery systems will only increase.