Why Powerwall Battery Cells Are A Game-Changer For Home Energy Storage

 Previously, the Powerwall 1 and 2 used NMC battery cells, but with the introduction of the Powerwall 3, we get to enjoy the benefits of LFP batteries. We love an acronym as much as the next person, but what does this all mean? 

The Powerwall 1 and 2 both used energy-dense NMC (Nickel Manganese Cobalt) battery cells, the same kind used in Tesla’s high-performance cars such as the Model X and S.

Tesla knows that your garage space is really valuable to you. The Powerwall does not take up much room compared to other bulky home batteries because the NMC chemistry is the most energy-dense battery available.

Tesla is always looking to push the boundaries and make improvements. By upgrading from the “18650” cells used in the Powerwall 1 to the “21700” cells in the Powerwall 2, they have increased energy density and run time. This move also reduced the use of Cobalt.

The cell is 21mm in diameter and 70mm long hence the “21700”. Although nobody is quite sure what the extra 0 is for. The cylindrical shape of the cells allows for better airflow and cooling when packed together.

The “21700” battery cells are also more efficient to manufacture, which reduces cost. This makes the Tesla Powerwall the cheapest cost per kWh home battery.

 If the Powerwall 2 was the trusty old workhorse of home energy storage, the Powerwall 3 is the sleek, high-performance sports car. Both get the job done, but one does it with more power, efficiency, and a whole lot more style. 

The biggest difference? The Powerwall 2 uses older NMC (Nickel Manganese Cobalt) battery chemistry, while the Powerwall 3 upgrades to LFP (Lithium Iron Phosphate). That’s like swapping out a V6 for a cutting-edge electric motor—more durable, longer-lasting, and built for the future.

LFP batteries handle more charge cycles, meaning they degrade slower and last longer, with cycle lives often exceeding 3,000 cycles—compared to just 800 for NMC—making them a smart choice for long-term energy storage. Plus, they’re safer, with lower fire risk and improved thermal stability.

 With a potential lifespan of over a decade, LFP batteries provide a cost-effective and reliable solution for homeowners looking to maximize their solar investment. 

 For homeowners looking for a reliable, efficient and space-saving home battery system, the Tesla Powerwall is the right choice.