Industrials entrepreneur Sanjeev Gupta will build the world’s biggest battery in South Australia, officials said on Friday, overtaking US billionaire Elon Musk’s project in the same state last year.

The 120MW/140MWh battery storage facility will support a new solar farm at the Whyalla Steelworks, which was taken over by the British billionaire's GFG Alliance when it bought Australia’s cash-strapped steelmaking giant Arrium last year.

The push towards more renewable energy projects in South Australia followed an "unprecedented" storm that hit in 2016, causing a state-wide blackout.

"Today’s announcement is another example of how South Australia ... is leading the world in renewable energy," state Premier Jay Weatherill said in a statement.

"As well as being the most powerful battery in the world, SIMEC ZEN Energy’s storage facility will help underpin the long-term viability of the Whyalla steelworks, as well as provide additional benefits to the South Australian grid."