Elon Musk will build the biggest lithium-ion battery system in Australia. His company Tesla, teamed up with the Australian government and a French renewable energy firm for the said project.

The battery system will be paired with a wind farm in South Australia. Once done, his lithium-ion battery system will be thrice the power compared to the next biggest in the world. The Tesla CEO announced the project during a press conference in Adelaide last Friday, June 30.

"If South Australia's willing to take a big risk, then so are we," Elon Musk said in the conference.

World's Largest Lithium-ion battery

Musk is known for responding to challenges thrown at him and his company. For instance, the announcement was linked to the statement given by billionaire Mike Cannon-Brookes last March. He asked whether or not Tesla can end electricity problems like blackouts in South Australia. Musk's response is apparently building the biggest of this kind in the world.

Musk also declared earlier this year that he can install and make it operational within 100 days from contract signing. The CEO added that if Tesla fails to deliver within 100 days the new battery system will be for free. Musk even asked Cannon-Brookes if that was serious enough.

Power cuts in Australia

In total, there were 1.7 million residents who constantly suffer from power shortage in South Australia.

There were instances when most of the state suffered from power loss due to faulty lines. The demand also increased due to the heat wave. Tesla's renewable power plant will provide a stable energy source for South Australia.

The project will benefit the residents of South Australia thus it is fitting for the South Australian government to fund it.

Initially, it costs about $AU 550 million ($417 million). The lithium-ion battery system will be linked to Neoen's Hornsdale Wind Farm, an energy company located near Jamestown, South Australia.

Musk is confident that the project will push through and that Tesla can deliver within the deadline. He reiterated that they need to make sure that it's working properly and that they will get it done even under 100 days.

The Australian government also announced the collaboration. They stated that battery storage is vital for the future of Australia's national energy market. According to the Sydney Morning Herald, the project will sustain 100 megawatts of energy and store 129-megawatt hours. In total, the calculated power will be able to power 30,000 homes.