Tesla Megapack In Australia Catches Fire

One of Tesla Inc.’s (TSLA) Megapack batteries in Australia caught fire on Friday, CNBC reported.

What Happened: The fire occurred during testing at the site of Victoria’s new Tesla Big Battery, the largest lithium-ion battery in Australia. The cause of the fire is not yet known, as per the report.

The grid-scale project, run by France-based renewable energy giant Neoen S.A. NOSPF, is intended to help the Australian state of Victoria's efforts to transition to renewable energy. The site has reportedly been safely isolated from the power grid.

Why It Matters: Tesla’s renewable energy production and storage business is seeing strong growth. The company’s energy and storage business reported revenue of $801 million in the recent second quarter, up from $370 million in the year-ago period.

The Megapack is Tesla’s third stationary energy storage product after the Powerwall and Powerpack. A single Megapack unit is a 3-MWh battery system, with built-in systems to manage all aspects of charging and discharging.

Tesla recently unveiled the pricing of its Megapack industrial-scale battery energy storage system, starting at $1 million.

Price Action: Tesla shares closed almost 4.7% higher in Thursday’s trading session at $677.35.

Read Next: Tesla Agrees To Settle Claims Of Battery Voltage Reduction For $1.5M

Photo: Courtesy of Tesla, for representative purposes. Doesn't show the exact Megapack that caught fire.