NatPower, Tesla strike $5 billion battery storage deal

NatPower and Tesla ↘4.22% announced a deal Tuesday to build 25 GWh of battery storage in Italy and the UK as the first phase of a program targeting over 100 GWh.reuters
Five initial projects will use Tesla’s Megapack systems and energy trading software, with total construction costs estimated at $4 billion to $5 billion.constructionreviewonline
The companies project the full program could generate more than $15 billion in revenue over 20 years, according to Reuters.reuters

NatPower and Tesla Strike $5 Billion Battery Storage Deal

Independent energy developer NatPower and Tesla announced on Tuesday a multiyear agreement to deploy 25 gigawatt hours of battery storage capacity across Italy and the United Kingdom, marking the first phase of a program that could ultimately exceed 100 GWh and cost between $4 billion and $5 billion to build.reuters

A Landmark Energy Storage Partnership

Under the deal, NatPower will use Tesla’s Megapack battery storage systems, the company’s utility-scale lithium-ion product designed for grid-level deployment. Five initial projects are planned under the first phase, with construction set to begin across selected sites in both countries. NatPower will also adopt Tesla’s energy trading technology platform, which optimizes electricity purchasing and sales strategies.constructionreviewonline

The companies estimated that the full program could generate more than $15 billion in revenue over a 20-year period.reuters

Building on Ambitious Clean Energy Plans

NatPower, founded in 2019, has been rapidly expanding its battery storage footprint in Europe. The company’s UK division previously announced a 12.5 GW pipeline comprising 13 battery storage projects, backed by more than £10 billion in private investment. In August 2025, NatPower UK reached a separate agreement with Sembcorp Utilities to deliver a 1 GW/8 GWh lithium-ion battery system with £1 billion in private funding.solarpowerportal

The Tesla partnership represents a consolidation of NatPower’s supply chain around a single technology provider while giving Tesla’s energy division one of its largest known Megapack deployment commitments. Tesla’s energy storage business has grown rapidly as utilities worldwide seek battery capacity to stabilize grids increasingly reliant on intermittent renewable generation.

Scale of the Commitment

The 25 GWh first phase alone would represent a substantial share of Europe’s installed battery storage capacity. With an ultimate target exceeding 100 GWh, the program positions NatPower as one of the continent’s largest battery storage developers. The deal reflects broader momentum in grid-scale energy storage as governments in both Italy and the UK pursue aggressive decarbonization timelines.constructionreviewonline