September 20, 2025: Tesla has issued a recall of its Powerwall 2 lithium ion battery units in Australia amid fears over the potential risks of fires.

The Australian Competition and Consumer Commission (ACCC) said on September 16 Tesla Motors Australia had identified certain battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat.

The company said it had received reports of Powerwall 2 units with the affected battery cells smoking or emitting flames, resulting in minor property damage.

Most affected units have already been remotely discharged by Tesla, the company said.
While the risk of overheating was now very low, if it were to occur it could lead to a fire that could cause serious injury, death or damage to property.

Powerwall 2 is a fully integrated AC battery system for residential or light commercial use. The lithium battery pack provides energy storage for solar self-consumption, time-based control, and backup.

Tesla has urged consumers to confirm that their Powerwall 2 system is online and check the Tesla app for a notification about whether their unit is affected, although those affected may have already noticed that their systems have been remotely discharged.

Affected units will be replaced at no cost and Tesla said it will consider compensation for lost energy savings from discharged Powerwall 2 systems on a case-by-case basis.
Tesla or a third-party service provider will contact consumers that have an affected Powerwall 2 unit to schedule replacements.

In 2022, the ACCC issued a warning over “potentially deadly” faulty batteries in residential energy storage systems covering a range of battery brands.

The following year, the ACCC called for a harmonized electrical safety regulatory framework across all Australian states to help combat fires and other incidents linked to lithium ion battery products.