The company, part of Return, said the 350MW project in the Netherlands will become operational in the first half of 2027.
Mufasa is the first large-scale battery storage project in the Netherlands to be fully funded with 100% project funding worth more than €350m.
The project is supported by Macquarie Capital as lead investor, together with TINC and existing Return investors, as well as six banks.
Mufasa will be built in Vlissingen, in the port of Zeeland (North Sea Port), a key hub in the transit of renewable energy in the Netherlands.
The project replaces a former coal-fired power plant connection to the high-voltage grid.
Musafa is the largest BESS in the Netherlands and uses the Megapack 2 XL, Tesla's large-scale energy storage system.
The batteries can charge and discharge 1400MWh several times a day with a capacity of 350MW, enough to power more than 200,000 households.
Tesla also offers an engineering, procurement and construction contract, as well as a long-term service agreement.
Project partner Eneco will use the battery to balance supply and demand in the renewable energy market.
Lion Storage co-founder Arno Hendriks said: “Project Mufasa is a game changer in battery storage in the Netherlands.
“As the first project to secure full project funding, it proves that energy storage is not only feasible, but also offers an attractive investment opportunity.”
Co-founder Jeroen Althoff added: “With cutting-edge technology and strong strategic partners, we are building a smarter and more resilient energy system and setting the standard for the future of energy storage in Europe.”
