Battery wizard of Oz: Tesla's footprint growing in Australia

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The lithium-ion battery system will be linked to Neoen's Hornsdale Wind Farm, an energy company located near Jamestown, South Australia.

Tesla today began the first steps in making Elon Musk's South Australian promise come true, as they confirmed that they are beginning to produce the world's largest lithium-ion battery in South Australia.

Under the terms of the agreement, Tesla must deliver the battery within 100 days of a contract being signed or it is free.

Musk said at a press conference this week the 100MW project was more than a small jump on current systems.

Since then, South Australia has experienced repeated blackouts, which grabbed Elon Musk's attention followed by him offering to solve the state's power problem.

The region was recently hit by a state-wide blackout after an energy crisis, something the development of the new battery will aim to avoid.

Tesla emphasised the significance of this deal, as it will transform South Australia to not only a domestic leader, but an global front-runner, when it comes to renewable energy solutions.

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Earlier this year, Australian Prime Minister Malcolm Turnbull declared a national energy emergency as parts of the country were under prolonged power outages over the last year due to its unstable grid. "I'm pretty darn impressed with South Australia willing to do a project of this magnitude that is beyond anything else in the world", Musk said.

"This system will be three times more powerful than any system on earth".

A historic agreement to build a 100 megawatt battery has been reached between the South Australian Government, Tesla and French renewable company Neoen.

Musk said the new battery will be 100 megawatts in capacity.

The system will provide power for "more than 30,000 homes" according to Tesla, and Musk's bet to build it in 100 days will be honoured.

Tesla also added that its Powerwall system is being installed for residential customers in the country.

The commitment to Tesla's battery technology comes amid a bitter political fight about the future of energy in Australia. After a tendering process that called for grid-scale solutions, Tesla was awarded the entire storage component of the project. "We're going to also make an effort to have it look good".