Certain Tesla Powerwall 2 batteries installed in Australia are subject to a recall after reports of battery cells in some systems smoking or venting flame.
What Happened And What’s The Risk?
On Tuesday, 16 September 2025, the Australian Competition and Consumer Commission (ACCC) published a voluntary recall notice concerning Powerwall 2 batteries on the ACCC’s ProductSafety website.
The notice states in part:
“Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat. Tesla has received reports of Powerwall 2 units with the affected battery cells smoking or emitting flames, resulting in minor property damage.”
The mention of smoke and flames pretty much says it all — the risk of a fire (and fumes) potentially causing property damage, injury or death. While ‘a few’ incidents have occurred where there has been damage to property (details of which haven’t been disclosed), there have been no reports of injuries as yet.
What’s Tesla Doing?
Most affected units have already been remotely discharged and disabled by Tesla, but the company advises owners to check for a message in the Tesla app, their emails or voicemails.
The messages in the app looks like so:
It says:
“Your Powerwall 2 is part of a subset of units that may contain a cell defect that prevents your device from functioning normally. Your unit has already been discharged and disabled. Tesla will replace it at no cost, and our team or a Certified Installer will contact you to schedule service. Thank you for your patience as we complete this process.”
Whether new owners will be provided the same model or a Powerwall 3 isn’t clear. Tesla stopped taking orders for the 2 in late 2024/early 2025 and it is no longer Clean Energy Council approved as it did not comply with an updated battery standard; but this may not be issue given it’s a warranty situation replacing like-for-like.
The approximate timeframe for replacements isn’t indicated. As for compensation for downtime; that will be considered on a case-by-case basis. The timing isn’t great (but it never is for recalls), with some installers working with Powerwall already under the pump from demand triggered by the Cheaper Home Batteries program.
The primary contact should be the original installer. But if that installer is unavailable, Tesla can be contacted by calling 1800 958 369 between 8:00 am and 6:00 pm AEST, or emailing [email protected].
Further recall information is available on the Tesla website.
How Many Powerwall 2 Batteries Are Affected?
Neither the ACCC or Tesla have provided any numbers that I know of. – 30 June 2022, but that doesn’t mean all sold during that timeframe are impacted.
Tesla appears to have been on the front foot with this recall and the situation shouldn’t turn out to be an excruciatingly drawn-out affair such as that with the LG battery recall that started in late 2020 and is *still* playing out. But the Clean Energy Council advises if there are issues resolving a battery replacement, consumers can submit a complaint with the CEC.
A Very Brief History Of Powerwall
Powerwall 2 has been popular in Australia; as has its successor, Powerwall 3. But the company’s share of the local home battery market has reportedly shrunk in the face of increasing competition and as a result of some of the antics of Tesla CEO Elon Musk.
The original Tesla Powerwall was unveiled by Elon Musk in 2015 and the world’s first installation was in Australia in January 2016; marking the start of the home battery revolution. The original model was soon followed by Powerwall 2, which entered mass production in 2017. The 3 was released in 2023, but wasn’t available for purchase and installation in Australia until August 2024.
More than one million Powerwall batteries have been installed globally. This is the first recall in Australia I’m aware of; although the 2’s CEC certification for Australia temporarily expired in 2022 after what was reportedly an admin faux pas.
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