Connect with us

Hi, what are you looking for?

CleanTechnica
Image Credit: Tesla Motors

Batteries

Tesla’s Gigafactory May Hit $100/kWh Holy Grail Of EV Batteries, Report Predicts

Tesla’s Gigafactory may achieve the $100/kWh holy grail of EV battery pack costs, according to recent reports.

Most analysts within the EV industry consider the $100-per-KW-hour water mark to be the big “tipping point” for EV batteries — that is to say, the point at which EVs will be undeniably cost-competitive with gas-powered vehicles. That is to say, stocker prices will be competitive — fuel and maintenance costs are already much lower. (EV batteries makeup a significant portion of an EV’s production/manufacturing costs)

Image Credit: Tesla Motors

EV Batteries Tesla Gigafactory


 

In order to hit the predicted $100/kWh battery cost mark, the Gigafactory will have to surpass its stated goal of lowering battery costs by 30%.

This, according to The Motley Fool, is exactly what will happen:

When Tesla first announced the Gigafactory, it clearly stated in its plans that it expected that battery pack cost per kilowatt hour would be greater than 30% by Model 3 volume ramp in 2017.

Panasonic (arguably more knowledgeable and experienced regarding lithium-ion production than any company in the world) admitted that a 30% reduction by 2017 was, indeed, a conservative prediction. And Panasonic is putting its money where its mouth is, with its deal to partner with Tesla. Panasonic’s investment is considerable; during Tesla’s second-quarter conference call, CEO Elon Musk said that he expects Panasonic to invest as much as $1.2 billion-$1.6 billion of the $4 billion the company expects to spend on the factory by 2020.

Not only does Tesla view 30% cost cuts to its batteries as conservative, but Musk said during the second-quarter call that he would be “disappointed if it took us 10 years to get to $100 a kilowatt-hour pack.” Since Tesla hasn’t shared exactly where its costs are today, it isn’t clear what percentage of a cut that $100 per kilowatt hour is to today’s cost, but as Deutsche Bank analyst Rod Lache noted during the call, it is low enough for Tesla’s electric vehicles to reach cost parity with — and possibly even improve upon — the cost of an internal combustion vehicle.

So, there you have it. All signs are still pointing toward the Gigafactory being every bit the game-changer that it’s been predicted to be.

We’ll know if this is true in a few years…

 

Advertisement
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

Comments

You May Also Like

Cars

The electric vehicle market in the U.S. is still fairly new, and Tesla has largely dominated that market since its inception. However, competition in the EV...

Cars

The next Tesla factory may be in Indonesia.

Cars

With multiple crises raging (chips, batteries, covid, Ukraine war…), disruption is the order of the day, and one can say that anything goes right...

Autonomous Vehicles

Tesla is having AI Day #2 in a few months. CEO Elon Musk announced that Tesla would hold a second AI Day on August...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.