Tesla's market cap dropped $20 billion in just two hours after trading closed Tuesday, as Musk and other Tesla executives presented their new battery and manufacturing strategies. The first would be how many miles per kWh a Tesla will do, the second the total cost including the purchase price of the vehicle. Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon. A made-in-Canada solution or contribution to the next generation of battery manufacturing is an exciting and invigorating prospect for the national sector and the potential is ripe for the taking. And that is just the cost, with no margin. Find Max's book on social theory, follow Max on twitter @Dr_Maximilian and at MaximilianHolland.com, or contact him via LinkedIn. Article originally published on EV Obsession. And that’s how they are going to take out so much cost in the manufacturing process,” said Burns. While Musk stated on Battery Day that there’s enough lithium in Nevada alone to supply all his company’s needs, in the past he has called out for supplies of lithium and nickel — and both are prevalent in many of Canada’s mining regions. Published on June 9th, 2018 | Tesla’s project for the mass production of its battery cells is to be called Roadrunner and aims to reduce costs to 100 US dollars per kilowatt-hour. But long-term meaning definitely less than 2 years.”. 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On stage in Fremont, Baglino described Tesla’s cell assembly factories (now at the pilot stage) as “a highway — no city driving” where continuous motion is the only speed. The most recent cost indication we had was in early 2016, when Tesla said it was already under $190/kWh cost at the pack level. That, Musk stressed several times, will eliminate the existing price differential … Currently, it’s estimated Tesla’s cost per kWh hovers near the $115 mark. Given that EV battery costs currently hover around $200 per kWh, a Tesla Model 3’s 90kWh battery costs a big chunk of change – around $18,000. As the above figures are only approximate, … Beyond Tesla’s current Canadian ties, Burns says that company’s accomplishments are sure to foster many more opportunities in this country. This is why you need a really long-lifetime battery if you want to tie to the grid.”. Batteries. Then CEO and Chairman Elon Musk took the microphone and answered as follows: “We think at the cell level probably we can do better than $100/kWh maybe later this year … depending upon [stable] commodity prices…. So Tesla will be investing in recycling with a 10-year view and a recycling pilot plant will be opening in Nevada next month. But Musk and Baglino threw the crowd a semantic curveball saying research is driving the company towards another objective: more budget-friendly batteries. Prior to Battery Day the overwhelming speculation was that Tesla was going to announce they had achieved a million-mile battery — something Dahn referenced in a footnote of a December 2019 research paper and further discussed in an exclusive interview with Electric Autonomy in July. Tesla’s plan leans heavily on its ability to overhaul manufacturing methods that have been “stuck in yesteryear’s technology,” says Burns. Drew Baglino, Tesla’s Senior Vice President, Powertrain and Energy Engineering, said that the company has a plan to halve the cost per kWh based not on a single innovation, but across the entire chain from raw materials to vehicle integration. It’s necessary here to highlight that this is the expected average price. Thus, in electric vehicles with battery packs that are 90-100 kWh, the cost of the battery alone would always be incredibly high. EVs are forecast to cost the same or less than a comparable gasoline-powered vehicle when the price of battery packs falls to between $125 and $150 per kWh. Based on this observation, and our battery demand forecast, we expect the price of an average battery pack to be around $94/kWh by 2024 and $62/kWh by 2030. Tesla Cofounder Ian Wright: How Tesla Made Cars Into Computers, 7-Year-Old Elon Musk Fan Has Flown A Cessna 172  As A Trainee — 3 Times, Ford Mustang Mach-E Christmas Ad — Cool, Fun, Great Start (& A Tad Confusing), New Hydrogen Fuel Cell-Powered Fast Chargers Announced, Tesla Model 3 = 31% of UK Electric Vehicle Sales. Mining and materials are obvious. Over time, average costs per-unit of energy capacity have decreased by 61% between 2015 and 2017, from $2,153/kWh to $834/kWh (Figure ES3). This means that for every doubling of cumulative volume, we observe an 18% reduction in price. The Tesla battery cost is generally lower per kWh than any other system, giving a lifetime cost per kWh competitive with the current grid cost of electricity (around 16p per kWh). Burns says DPMG is Dalhousie and Novonix’s answer to, “exactly what [Tesla] talks about: lower cost cathode manufacturing, direct minerals, no expensive sulphate steps, eliminating waste water, lower operating cost, lower capital cost equipment.”. CleanTechnica is the #1 cleantech-focused news & analysis website in the US & the world, focusing primarily on electric cars, solar energy, wind energy, & energy storage. This significant industrial breakthrough should be made possible through several factors, reports US Tesla outlet … A current Powerwall pulling extra power in at night and using it during the day would take me 13.7 years to pay off. Set the current and desired state of charge (20-80% by default); 2. “Tesla basically said we can get close to $50/kWh without doing anything crazy in the chemistry.”. For more information, download our guide "Is Tesla Powerwall 2 Right for Me?" —Elon Musk. If EVs are to be seriously competitive with Internal Combustion Engines (ICE), those costs need to drop by at least 25%, to around $145 per kWh. To that end, Musk also spoke of Tesla aiming to produce a $25,000 vehicle in the same three-year timeframe. It is also lighter and can attain a much higher range. To calculate how much it will cost you per mile based purely on the mile per kWh and the cost of your electricity, we need to know two things. In a five-part plan, the duo broke down Tesla’s roadmap for the near future: cell design, cell factory, anode materials, cathode materials and cell-vehicle integration. Comparing cost of a battery / storage system is a science in itself. Given that Elon Musk said that in 2 years time (2020) the battery pack cost per kWh will likely achieve the cost point that the cell cost will achieve later this year (2018) — and estimating that the pack adds around 30% to the cost — we can see that Tesla remains on an approximate 15% per year cost reduction curve. Tesla would also be able to introduce Model 3 standard battery pack at an initial cost of $35,000 with a $100 per kWh battery cell. Cost per warranted kWh 1 cycle per day If the battery is cycled once per day, this is how much each warranted kilowatt-hour of stored electricity will cost. So a full 1/3 of the cost of the 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. Figure ES2. (adsbygoogle = window.adsbygoogle || []).push({}); Appreciate CleanTechnica’s originality? Electrek has learned more about Tesla’s secret project “Roadrunner”: applying “the machine that builds the machine” strategy to produce cheaper battery cells on a massive scale. Although the headline Tesla Powerwall price can seem high, it’s actually good value for money in terms of cost per kWh of storage. The typical cost of the Powerwall in the UK, supplied and installed, is about £7,000 + VAT. That, Musk stressed several times, will eliminate the existing price differential between EVs and traditional internal combustion vehicles. So to answer the question on the price of the Tesla Model 3’s battery, the cost per kWh is at $150 which equates to $7,500 of this model’s battery pack. Tags: Elon Musk, EV batteries, JB Straubel, Tesla, Tesla annual shareholder meetings, Tesla batteries, Tesla battery costs, Tesla financials, Tesla Model 3, Tesla Model 3 batteries, Tesla Model 3 battery costs. Musk may yet come back for more, but it’s also likely that other OEMs are eyeing Canada’s growing knowledge reservoirs and tech clusters. They are willing to erase the whole board when it comes to the manufacturing process and draw up something that’s going to play out cheaper.”. “Tesla is going to be hell-bent on becoming the best manufacturer on earth,” added Musk. DON'T MISS: Electric-car battery costs: Tesla $190 per kwh for pack, GM $145 for cells The Tesla Powerwall is currently a 13.5 kWh system and costs $6,500. Indeed, in the “small luxury car” segment (or in the “mid-sized premium sedan” segment, depending on how you categorize things) Tesla is already outselling combustion cars in the US. Once an individual product’s price per kilowatt-hour drops below 10 cents, battery storage is likely to be a worthwhile investment for a large number of households. Here’s the graph of Tesla’s battery pack cost trend line, showing significant cost advantage over the industry a… The most recent cost indication we had was in early 2016, when Tesla said it was already under $190/kWh cost at the pack level. When optimized, said Baglino, they’ll be able to reduce their factory footprint by a factor 10. From mining to body moulds, Tesla is now driving to near-full vertical integration of their value chain with potentially industry-changing implications. The company is projecting with full implementation — which they estimate will take two to three years — there will be a 56-per-cent reduction in cost per kilowatt hour. This 100$/kWh milestone has long been considered the key to electric cars achieving price parity with ICEs without subsidies. If the car’s battery was completely flat, it would take about 3.5 hours to fully charge — 75 divided by 22 equals 3.4. Let's say that the model 3 has a $150 KwH cost and has a 70 KwH storage capacity. Tesla is upgrading Model 3 and Model Y headlights with more powerful and precise beam Electric vehicle battery cost officially dips under critical $100/kWh price point but there’s a catch This topic also came up in Dahn’s interview in July, in which he remarked: “You’ll sign up with a utility to let them use your car to store and deliver energy within certain limits. News is published on CleanTechnica.com, while reports are published on Future-Trends.CleanTechnica.com/Reports/ and buying guides are here. This means that compelling and competitively priced EVs will soon be able to successfully compete in even lower priced segments of the auto market, and continue from there to make more and more affordable EVs possible. True to form, Tesla founder and CEO Elon Musk had some some bold predictions — for the future of the company, battery technology and the EV industry overall. Choose the socket you’re charging from or manually adjust voltage and amperage; 3. If it is able to deliver on the 56-per-cent reduction target that would bring costs down to roughly $65/kWh. The curve of the cost per kWh of batteries is not improving fast enough. That's a drop of more than 70% in the price per kWh in 6 years! by Dr. Maximilian Holland. … We discuss both here. Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Going forward, if it can maintain this trajectory (and there is every indication that it can and is determined to), Tesla will pass pack-level costs of $90/kWh in 2021, and $60/kWh in 2023. “Heads and shoulders above anyone else.”, “Tesla basically said we can get close to $50/kWh without doing anything crazy in the chemistry.”. It can go lower as the design and technology catch up. As an example, Burns points to existing expertise in the Halifax area with dry particle micro granulation technology (DPMG) a technique developed by Dalhousie and Novonix that can be applied to battery material manufacturing. At first glance every power storage shows fantastic values ​​on the data sheet. New technologies like silicon or lithium anodes, solid state cells and new cathode materials will be key to helping cost reductions play out." Total installed cost of large-scale battery storage systems by duration (2013 -2017) power capacity cost energy capacity cost dollars per kilowatt dollars per kilowatthour “There is no reason that opportunity couldn’t be built up in Canada … to supply Tesla or others with cathode material where the ore was mined in Canada and the material was processed in Canada with Canadian-built technology,” Burns says. Then there is an additional topic. Sign up for our free daily newsletter or weekly newsletter to never miss a story. Baglino expanded somewhat on Musk’s remarks, reiterating that new Tesla vehicles will have bi-directional charging capabilities — a V2G essential — but that it wasn’t a major focus of their plans moving forward. Battery costs, coming through cutting-edge cell chemistry as well as more efficient production processes, are a key differentiator in the race to enable EVs that achieve overall price competitiveness with combustion engine vehicles — at the cash register, not just over the ownership lifetimes of the vehicles. The price of batteries. This als… Cost reduction so far: 49% per US$/kWh. It was a packed parking lot as Team Tesla took the stage earlier this week for the electric vehicle manufacturer’s much-anticipated and socially distanced Battery Day event. Instead, he touted another Tesla product, the PowerWall battery storage system — encouraging individuals to “become your own utility” by integrating those and solar panels (which Tesla also makes and sells) into their homes and using the energy generated and stored to power their residence and charge their electric vehicles. Here’s the graph of Tesla’s battery pack cost trend line, showing significant cost advantage over the industry average, which is regularly tracked by BNEF: This graph demonstrates that Tesla is around 4 to 5 years ahead of the industry average cost per kWh, a large part of the reason why the company can offer much more compelling and better value EVs than any of the legacy automakers. Spirit is a Tesla Powerwall certified installer. 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