The ACCC has issued a product recall for certain Tesla Powerwall 2 battery systems after reports that some units can overheat and catch fire.

The Powerwall 2 is a rechargeable lithium-ion battery system designed for residential and light commercial use, storing energy for solar applications and backup power.

Tesla reported that some lithium-ion battery cells from a third-party supplier in certain Powerwall 2 units may fail, leading to overheating. Incidents of smoke and even flames have been reported, causing some property damage, though no injuries have been reported.

The recall notice stated that while most affected units have already been remotely discharged, there remains a risk of overheating, which could result in serious injury or death if a fire occurs.

Consumers are advised to check their system via the Tesla app to see if it is online and affected by the defect. Tesla will automatically discharge impacted units as a precaution until replacements can be provided.

Affected units will be replaced free of charge, and Tesla may also consider compensation for lost energy savings from discharged systems on a case-by-case basis.