Tesla recalls 10,500 Powerwall 2 batteries in US over fire risk

(Reuters) -Tesla said on Thursday it is recalling about 10,500 units of its Powerwall 2 battery power systems in the U.S. for fire and burn hazards after receiving 22 reports of overheating.

The U.S. Consumer Product Safety Commission said the recall covers systems that "may fail and overheat," raising the risk of serious injury or death, though no injuries have been reported yet.

The Powerwall 2 is a residential energy-storage unit that integrates with solar-panel systems, storing electricity for self-consumption, shifting usage to lower-cost periods and providing backup in grid outages.

The defect stems from certain lithium-ion battery cells that may overheat under certain conditions, smoke or ignite. In a few cases the defect has caused property damage, according to the recall notice.

Tesla said it is remotely limiting the charge on affected units to minimize risk while it arranges free replacements for customers.

The recall draws attention to Tesla's battery-cell suppliers and comes as its energy-storage business plays a growing role in the company's expansion beyond electric vehicles.

(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)

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