Tesla has unveiled two new energy storage products: Megapack 3, the latest generation of its utility-scale energy storage system, and Megablock, which integrates Megapack 3 with transformers and switchgear.

At an event in Las Vegas on the margins of the RE+ renewable energy convention, Tesla unveiled its latest generation of large-scale energy storage products.

As expected, Tesla unveiled Megapack 3, the latest generation of its biggest stationary energy storage battery system.

The company is now using bigger 2.8-liter battery cells, resulting in a higher energy capacity: roughly 5 MWh compared to 3.9 MWh for Megpack 2.

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Tesla also significantly simplified the thermal bay, reducing the number of connections by 78%.

However, the more significant product unveiled by Tesla today is the Megablock, which combines four Megapack 3s directly connected to a megavolt transformer and switchgear.

This is what it looks like:

Tesla claims 23% faster installation time with more of the assembly being done in a factory setting rather than on-site.

Mike Snyder, Tesla’s VP of energy and charging, claimed that Tesla can deploy 1 GWh in 20 business days with this new Megablock configuration.

The company also claims a higher energy density at the site: 248 MWh per acre.

Snyder said that Tesla plans to build Megapack 3 in Houston starting in late 2026. We learned in March that Tesla was building a new Megafactory in Houston.

The energy executive stated that the factory would have a capacity of 50 gigawatt-hours (GWh) per year.

Electrek’s Take

This sounds like a strong incremental improvement to an already popular energy storage product.

However, the new battery cells are probably the biggest part of the improvement and Tesla doesn’t manufacture those.

In fact, Tesla’s battery cell suppliers BYD and CATL, both have battery systems that compete with Tesla’s Megapack, which could prove problematic for Tesla in the near future.

I think Tesla’s strongest energy storage product is probably its Autobidder software. It optimizes energy storage products like nothing else. It would do well to keep licensing this to other energy storage systems.

Tesla’s next biggest advantage is the complete integration of energy storage, power electronics, software, and service. It makes for an attractive turnkey solutions for utilities and large-scale projects, like AI data centers.

China’s clean energy surge is starting to transform the world’s energy systems, according to Ember’s “China Energy Transition Review 2025.” The report shows that China’s massive investments in solar, wind, storage, and electrification are cutting fossil fuel use at home while sending clean tech around the globe.

Between 2015 and 2023, fossil fuel use in China’s final energy consumption fell by 1.7% across buildings, industry, and transport, while electricity use rose by 65%. In power generation, fossil output dropped 2% in the first half of 2025 year-over-year, while wind and solar generation soared 16% and 43%, respectively. In the 12 months to June 2025, wind and solar generated more electricity than hydro, nuclear, and bioenergy for the first time. Just four years earlier, they produced only half as much.

This momentum is being fueled by record investment. In 2024 alone, China invested $625 billion in clean energy – 31% of the global total – with major expansions in storage and grids. That money doubled wind and solar capacity in China between 2021 and 2024 to 1,400 GW and tripled battery storage to nearly 95 GW. Grid spending also hit $85 billion last year, making integrating renewables and cutting curtailment easier.

As of 2023, electricity made up 32.4% of China’s final energy consumption, and it rises by about one percentage point per year. It’s the biggest source in buildings (39%) and industry (31%), overtaking coal in the latter sector for the first time in 2023.

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Ember’s analysts say the transformation is deeply baked into China’s economy. Clean energy isn’t just about climate goals – it’s cheaper, more secure, and a foundation for future competitiveness. In 2024, clean energy investment and production contributed $1.9 trillion to the national economy – about a tenth of China’s GDP, equal to Australia’s entire economy.

Globally, China’s clean energy boom is reshaping markets: the country makes 80% of the world’s solar panels and 60% of its wind turbines, while leading exports of EVs, batteries, and heat pumps. It’s also filing three out of every four clean energy patents worldwide. That flood of tech has pushed costs down, letting emerging economies leapfrog straight into clean power systems. In fact, in 2024, a quarter of emerging economies sourced more of their final energy from electricity than the US, and nearly two-thirds generated a higher share from solar.

This shift spells trouble for fossil fuel exporters. China’s energy-related fossil fuel consumption will likely keep falling as electrification accelerates and exports of cheap clean tech grow. For decades, China was the main driver of global fossil demand. “Now, as its own consumption peaks and begins to decline, and as its clean energy exports scale globally, it is set to tip the balance, turning a long era of rising global demand into the start of structural decline,” said Sam Butler-Sloss, manager at Ember.

Still, Ember warns, the future of global fossil fuel demand isn’t set in stone. Rapidly growing economies outside the OECD could still offset China’s declines unless clean technologies scale just as quickly there.

But China’s case is proof of concept. “It shows what’s possible when long-term vision meets coordinated action,” said His Excellency Dr Suwit Khunkitti, Thailand’s former deputy prime minister. “It proves that decarbonization can go hand in hand with industrial upgrading, job creation, and improved quality of life.”

Read more: H1 2025: China installs more solar than rest of the world combined

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On today’s episode of Quick Charge, the Germans are rolling out a raft of great-looking new EVs with great range, fast charging, and competitive price tags. Meanwhile, Tesla’s US market share has sunk to near record lows. As punishment, Elon’s getting a trillion-dollar raise.

Mercedes and BMW each have a fresh take on the electric crossover with more than 400 miles of range and VW has a new affordable EV on tap, too. Plus, I talk you through the ins and outs of some of my favorite toys: the 10×10 Siesta Dock XL from Retrospec and the all-electric, go-anywhere John Deere TE 4×2 Gator UTV.

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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them. 

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.