The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Tesla: Energy storage demand ‘remains significantly above’ production capacity

LinkedIn
Twitter
Reddit
Facebook
Email

Tesla made 846MWh of battery energy storage system (BESS) deployments in the first quarter of this year and is looking ahead to the opening of a dedicated grid-scale BESS factory to meet demand.

The electric vehicle (EV) and energy technology company reported its Q1 2022 figures earlier this month. As reported by our sister site PV Tech, component shortages were blamed for a continued decrease in solar PV installs, which stood at 48MW for the period, its second worst quarter on record for solar.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Tesla earned US$1.279 billion revenues combined from its energy business, including solar PV and battery storage over the three-month period, significantly more than Q1 2021’s US$893 million and a little more than the US$1.064 billion reported for Q4 2021.

Cost of revenues in that energy generation and storage business division was counted as US$688 million. Total revenues across all of Tesla’s business lines were US$18.76 billion, an US$8.37 billion increase year-on-year.

Storage deployments enjoyed a 90% year-on-year rise, from 445MWh in Q1 2021, although they were slightly down from Q4 2021, when 978MWh were recorded.

The ongoing impacts of the COVID-19 pandemic on logistics costs and timing were felt during the quarter, Tesla said in its Form 10-Q filed with the US SEC, with semiconductor shortages and shipping delays among the effects.

However, sales and demand for energy storage products and services appears to remain robust. Energy-Storage.news has reported on various large-scale battery storage projects over the past few months that Tesla has been awarded in markets including the US, UK and Australia.

Over Q1 2022, strong deployments were seen for the Tesla Powerwall BESS product, and the company said it is looking forward to opening and ramping up a dedicated factory making its Megapack grid-scale products – although the company does not report a breakout of sales figures by product.

Demand for battery storage “remains significantly above capacity,” the company said, with growth limited by ongoing supply chain challenges, which for batteries have been hugely exacerbated – although not entirely caused by – the pandemic.

It echoed what was said by Tesla when reporting its full-year 2021 results in January when executives stated demand was “substantially above capacity”. In 2021, Tesla deployed 3,992MWh of storage for the full year, 32% more than in 2020 and more than double what it did in 2019.

Tesla is now using the same battery chemistry, lithium iron phosphate (LFP) for about half of its range of vehicles as it does for BESS. Diversifying battery chemistries will be critical to the company’s long-term growth, to match products to use cases better and to expand supplier base, Tesla said.

8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

May 23, 2024
The Gore Street Energy Storage Fund’s international diversification helped it maintain average revenues across its portfolio, which spans the Great Britain (GB), Ireland, Germany and Texas, US.
May 22, 2024
Developers SENS and Callio have revealed a hybrid project in Finland which could combine a battery energy storage system (BESS), pumped hydro energy storage and solar PV technology.
Premium
May 17, 2024
We hear from renewables independent power producer (IPP) and energy trading firm Monsson about a recent BESS project in Romania which reportedly used nearly 100% European technologies.
May 16, 2024
Battery storage project development costs will continue to fall in 2024 as lithium costs decline “significantly,” according to BMI Research.
May 15, 2024
US zinc hybrid cathode battery storage manufacturer Eos Energy Enterprises has reaffirmed revenue guidance and expects to achieve a positive contribution margin this year.

Most Popular

Email Newsletter