Tesla recalls 10,000 Powerwall 2 batteries in US due to fire risk | Companies

The US Consumer Product Safety Commission said the recall includes systems that “may malfunction and overheat,” increasing the risk of serious injury or death, although no injuries have been reported so far.

Powerwall 2 is a residential energy storage unit that integrates with solar panel systemsStoring electricity for self-consumption, transferring use for less expensive periods, and providing backup energy in the event of a power grid failure.

The fault arises from some lithium-ion battery cells which under certain conditions may overheat, emit smoke or catch fire. In some cases, the defect caused property damage, according to the recall notice.

Tesla said it is limiting shipping of affected units remotely to reduce risks while providing free replacements to customers.

The recall draws attention to Tesla’s battery cell suppliers and comes as its energy storage business plays an increasing role in the company’s expansion beyond electric vehicles.