Tesla building world's largest lithium ion battery in Australia
The 100-megawatt battery would protect the state from an energy crisis that caused widespread blackouts.
Musk has promised to build the battery within 100 days or would do it for free.
New battery three times larger than world's current largest cell
"There is certainly some risk, because this will be largest battery installation in the world by a significant margin," Musk said, adding that that "the next biggest battery in the world is 30 megawatts,"
How the Tesla-built battery will benefit South Australia
Tesla's new battery will be linked to a Neoen wind farm.
It will operate 24-hours a day and will provide additional power during emergencies.
South Australia Premier Jay Weatherill said the battery will "completely transform the way in which renewable energy is stored" and lower prices.
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South Australia suffered from series of crippling blackouts
South Australia has suffered a series of blackouts since being hit by one of the most extreme storms in five decades, last September.
The state is home to 1.7 million people and is 40% larger in size than the US state of Texas.
The blackouts have led to a serious political spat between the state and Australia's central government led by PM Malcolm Turnbull.
PM Malcolm Turnbull
South Australia Premier Jay Weatherill