Tesla will produce its own batteries in 2021 and it will not be sold in Australia, the Australian Energy Market Operator (AEMO) has announced.
The announcement comes after a long time in the making, with the company having said it would make its batteries in India in 2018 and China in 2019.
AEMO said it had received bids for the supply of batteries from both Tesla and a number of other battery suppliers, and it would look at those proposals “over a period of time”.
The company has been struggling to meet demand in Australia as its cars, electric trucks and its battery storage business have all struggled.
Australia’s battery supply will be supplied by a new company called BHP Billiton, and will come from two different sources.
The company will supply batteries to the Government, and to other companies, as well as Tesla, according to the AEMA.
Tesla’s battery storage plant in South Australia, which is owned by Tesla, has struggled to meet growing demand.
The AEMC has been in talks with Tesla over a new battery plant in Tasmania that is currently under construction.
However, Tesla has recently stated that it would not be building battery storage facilities in Australia.
A company spokesperson said that Tesla had been unable to secure any government financing for its battery production facilities, and that it was not seeking to sell the batteries to other investors.
“Tesla has decided to focus on building its own lithium-ion battery storage capacity in Australia through the BHP Battery Solutions business and we expect this to continue into the future,” the spokesperson said.
The AEMS spokesman said the company had been in discussions with Tesla, but had been unsuccessful in finding a suitable financing.
“We expect that there will be further discussions between the two companies as the business develops,” he said.
Tesla will be buying batteries from the BH Solar PV Company and the Tesla Energy storage plant.
Tesla’s battery production plant in Adelaide has been the subject of some controversy, with protests in 2016 and a court order in 2017 banning protests at the plant.
A Tesla spokesperson said the facility would remain open for Tesla’s business as it had “a strong track record of delivering high-quality battery products”.
The Tesla Energy plant will be located in the Gold Coast, which has seen an increase in solar power generation.
“The Tesla BHP Solar PV project in the Sydney suburbs will have its own independent capacity for storing solar power, and is fully compliant with the National Electricity Market,” the AAMO spokesperson said in a statement.
“The BHP solar project will be a major expansion of the Tesla BH storage and storage battery operations, and a key part of Tesla’s global expansion plans.”
The BH Powertrain project will also be developed and built in Southport, the site of the original Tesla powertrain factory.
Tesla plans to build a new 500MW powertrain facility at the site to further enhance Tesla’s BHP Powertrain operation.