Tesla just struck a deal to build one of the largest battery storage facilities in the world.
It will provide a 20-megawatt Powerpack system at a substation in Mira Loma, California. The lithium-ion battery system will store 80-megawatt hours of energy, enough to power more than 2,500 households for a day, according to a Tesla blog post. Tesla expects the grid to be completed by 2016. Southern California Edison owns the substation.
The contract is part of a state-mandated plan to improve grid reliability. It was originally ordered in 2013 and got expedited after a massive leak at a natural gas well in Aliso Canyon threatened power supplies.
Tesla shares rose by as much as 3 percent on Thursday.