Tesla and independent energy firm NatPower have agreed to build 25 gigawatt-hours of battery storage using Megapack systems in Italy and Britain.
The multiyear agreement covers five initial projects with a construction cost of $4 billion to $5 billion. NatPower will deploy the systems and use Tesla trading software to manage electricity purchases and sales on the grid.
The companies announced the deal on Tuesday. It forms the first phase of a broader program that aims to exceed 100 GWh of storage capacity, with potential revenue above $15 billion over 20 years.
NatPower CEO Fabrizio Zago said the partnership creates an ecosystem that aligns capital and execution. The projects will support Europe’s growing need for storage to balance wind and solar power.
Tesla’s energy storage business deployed a record 46.7 GWh globally in 2025. The new contract extends that growth into multiple European markets.