Tesla recalls 10,500 Powerwall 2 batteries in the US due to fire risk

(Reuters) – Tesla on Thursday announced the recall of around 10,500 units of its Powerwall 2 battery power systems in the United States due to fire and burn risks, after receiving 22 reports of overheating.

The US Consumer Product Safety Commission said the recall covers systems that “may fail and overheat,” increasing the risk of serious injury or death, although no injuries have been reported to date.

The Powerwall 2 is a residential energy storage unit that integrates with solar panel systems, storing electricity for self-consumption, shifting usage to lower cost periods, and providing backup power in the event of grid failures.

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The defect arises from certain lithium-ion battery cells that may overheat under certain conditions, emit smoke or catch fire. In some cases, the defect caused property damage, according to the recall notice.

Tesla said it is remotely limiting the charge of affected units to minimize risks while providing free replacements to customers.

The recall draws attention to Tesla’s battery cell suppliers and comes as its energy storage business plays an increasing role in the company’s expansion beyond electric vehicles.

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