Tesla to build world's largest battery in Australia

South Australia signed the deal with the car manufacturer and energy firm Neoen.

Tesla’s billionaire owner Elon Musk revealed the deal on Friday, in which his company will provide the 11 megawatt facility to South Australia.

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’s billionaire owner Elon Musk revealed the deal on Friday

Musk said the mega-battery should be ready before the end of 2017, and added that it would improve the efficiency of the region’s energy use.

"You can essentially charge up the battery packs when you have excess power when the cost of production is very low ... And then discharge it when the cost of power production is high, and this effectively lowers the average cost to the end customer," Musk said at the press conference on Friday.

South Australia premier Jay Weatherill said the installation of the battery would transform the area.

"It will completely transform the way in which renewable energy is stored, and also stabilise the South Australian network as well as putting downward pressure on prices," Weatherill said.