Elon Musk: Cheaper, More Powerful Electric Vehicle Batteries are 3 Years off
Tesla CEO acknowledged the design and manufacturing process of the new cells, which he says will be half as expensive, is not complete.
Elon Musk described a new generation of electric vehicle batteries that will be more powerful, longer-lasting, and half as expensive as the company’s current cells at Tesla’s “Battery Day” on Tuesday.
“We do not have an affordable car. That’s something we will have in the future. But we’ve got to get the cost of batteries down,” Musk said. Read also: European Battery Makers Power up for Great Green Recovery
New Cells will be 5 Times Effective:
Tesla’s new larger cylindrical cells will provide five times more energy, six times more power, and 16% greater driving range, Musk said, adding that full production is about three years away. "We do not have an affordable car. That’s something we will have in the future. But we’ve got to get the cost of batteries down,” Musk said. Honda Goes Small with First Mass-produced All-Electric Car Honda-e Explore the Trendy features.
Role of Automation in Reducing the Cost:
To help reduce cost, Musk said Tesla planned to recycle battery cells at its Nevada "gigafactory,” while reducing cobalt – one of the most expensive battery materials – to virtually zero. It also plans to manufacture its own battery cells at several highly automated factories around the world. Read also: AUS: Hyundai Signed MOU with Jemena & Coregas for the Production of Green Hydrogen Gas for Fleet
Planning for the Future & As of Now:
The automaker plans to produce the new cells via a highly automated, continuous-motion assembly process, according to Drew Baglino, Tesla senior vice-president of powertrain and energy engineering. Speaking at the event, during which Musk outlined plans to cut costs, the CEO acknowledged that Tesla does not have its new battery design and manufacturing process fully complete. The automaker’s shares slipped as Musk forecast the change could take three years. Tesla has frequently missed production targets.
Tesla expects to eventually be able to build as many as 20m electric vehicles a year. This year, the entire auto industry expects to deliver 80m cars globally.
At the opening of the event, which drew over 270,000 online viewers, Musk walked on stage as about 240 shareholders – each sitting in a Tesla Model 3 in the company parking lot – honked their car horns in approval. Read more about the Top Reasons for Car Sales plunging in India
Expansion in Manufacturing:
Musk said Tesla is planning to manufacture its own battery cells at several highly automated factories around the world.
Tesla is also building its own cell manufacturing facility at its new factory in Germany in addition to the new plant in Fremont. Know more about 5 useful tips you need to know before using bio-diesel for your fleet
What will be the Price/Cost of the Batteries?:
While average electric vehicle prices have decreased in recent years thanks to changes in battery composition, they are still more expensive than conventional cars, with the battery estimated to make up a quarter to a third of an electric vehicle’s cost.
Some researchers estimate that price parity, or the point at which electric vehicles are equal in value to internal combustion cars, is reached when battery packs cost $100 per kilowatt-hour (kWh).
Tesla’s battery packs cost $156 per kWh in 2019, according to electric vehicle consulting firm Cairn Energy Research Advisors, which would put the cost of a 90-kWh pack at around $14,000. Read more about the 5 effective ways of saving fuel
At the opening of the event, Musk walked on stage in a black t-shirt and jeans as about 240 shareholders -- each sitting in a Tesla Model 3 in the company parking lot -- honked their car horns in approval. To help drive down vehicle costs, Musk described a new generation of batteries that will be more powerful, longer-lasting, and half as expensive than the company's current cells. Further, read: South Africa Fleet Sales Continue to Decline
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