Cairn Energy Research Advisors reports that Tesla has the lowest cost batteries by at least 10% and over 24% versus other car companies. This is before the cost reductions that Tesla is implementing from 2020 Battery Day.
Tesla currently pays an average of $142 per kilowatt-hour (kWh) for battery cells purchased from its three suppliers: Panasonic, LG Chem and CATL. By comparison, GM pays an average of $169 per kWh for its battery cells while the industry average runs at about $186 per kWh.
Cairns data estimates that Tesla’s battery packs cost, on average, $187 per kWh while GM’s packs cost $207 per kWh and the auto industry spends an average of $246 per kWh for battery packs.
Rob Mauer of Tesla Daily has data to infer that Tesla has a battery cell cost of $98 per kilowatt-hour. Tesla executing on the Battery Day would get the costs to $50-55 per kilowatt-hour.
GM is seven years behind Tesla in building a lithium ion battery plant. Ultium Cells, a joint venture between General Motors and LG Chem, will mass-produce Ultium battery cells at the facility to advance the push for a zero-emissions, all-electric future. GM and LG Chem are investing $2.3 billion.
The GM-LG Chem battery factory will be completed in 2022 and will ramp up to make 30 GWh/year of battery cells.
In 2015, Tesla and Panasonic completed the Nevada Giga battery factory.
Tesla that should be producing 10 GWh/year pilot plant for new 4680 cells starting by the end of 2021. Tesla will be building 100 GWh/year battery factories at its new Berlin and Texas factory.
LG Chem, CATL and Panasonic are working with Tesla on new 4680 battery cell lines. Those new batteries will reduce Tesla battery costs even faster than competing car company battery cost reductions.
SOURCES – CNBC, Cairn Energy Research Advisors
Written by Brian Wang, Nextbigfuture.com
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
12 thoughts on “Tesla Current 10-30% Battery Cost Advantage is Still Improving”
I've seen thunders debunks a few times, he's hit or miss, he was right about solar roads, but still wrong about tesla and spacex
same amount he paid your mother.
how much does Tesla pay you Brian for this periodic posting of this incoherent sell side trash?
I can assure you that the one thing that is more annoying than Elon, is his absolutely midwit IQ fanbase. They will believe literally anything. It's actually hilarious
A twisted response of a phony hypocrite.
Elon is changing a whole lot of established industries. That's WHY so many people have decided to hate him.
Pretty sure that Elon Musk is not Chinese. Or that Brian is not related to him. Or wherever you are going with this.
Oh Thunderfoot? Is he still around? I remember him from his feminist debunking days. Good times.
Like him or hate him Elon is driving innovation, market change and research in ways we have not seen in at least a generation. Electrification is great, but what we now need in the US to finalize this technology shift is the same kind of revolution in power generation and transmission. I guess what I am saying is what we need more of are dreamers with a STEM background like Elon instead of pure skeptics.
The advantage Tesla have is they will have more battery mass production facilities coming online this year than anyone else. And that the capacity isn't enough.
ThunderFOOT on YouTube exposed so called innovation from Tesla regarding this new battery which Tesla claims has 50% more energy that anything on the market, guess what… It is like that because the innovation was they build battery 50% larger than the previous ones…
Very unconvincing. Both GM and Tesla are coming with a new line of batteries, GM has supposedly made significant reduction with an improved chemistry, there isn't a comparison between the cost of the two but the new Tesla batteries in comparison to the current stock.
The assumption here is of course that other companies are not making plans for new batteries.
Why assume that the battery companies will work only with Tesla to make better batteries? Knowledge in a free market spreads rather quickly.
"GM is seven years behind Tesla in building a lithium ion battery plant" does not mean that GM is 7 years behind Tesla in battery performance, it could be that since this is their first one their plant can be superior.
Myopism… Chinese nepotistic mindset… Dangerous…
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