The High Cost of EV Batteries Impacting Manufacturer Sales Volume, Profits, & Replacement

SITUATION:
EV Batteries are expensive; So expensive that drives up buyer cost.
Tesla’s Model 3 battery pack costs $190 per kWh;
General Motors’ Chevrolet Bolt battery pack is estimated to cost about
$205 per kWh.

SIGNIFICANCE:
Analysts predicted the cost of an EV battery will fall below $100/kwh by 2025.
The cost of EV batteries will continue to make it difficult for Tesla & OEMs to make a profit.

Replacement Batteries:  What is the Cost to replace an EV battery?
Replacement hybrid car battery can range anywhere from $1,000 to more than $6,000, depending on the year & model of car.
While is a big expense, car makers are set on reducing prices.

SOLUTION(S)

Tesla’s new batteries will rely on low-cobalt and cobalt-free battery chemistries, & the use of chemical additives, materials and coating;
CATL also has developed a simpler and less expensive way of packaging battery cells, called cell-to-pack.
Eliminates the middle step of bundling cells. Tesla is expected to use the technology to help reduce battery weight and cost.

STATS:
Estimates the size of the global battery market to be $116 billion annually, not including investment in the supply chain.
EV Market Share in Europe is 6.8%;

SOURCE (S):
NYT  June 18th   Heard on the Street “ Auto Industry has debt problem”;  https://www.wsj.com/articles/the-car-industrys-1-1-trillion-debt-problem-11592384319

https://www.wsj.com/articles/the-car-industrys-1-1-trillion-debt-problem-11592384319   “Tesla’s secret batteries aim to rework the math for electric cars and the grid”

https://www.reuters.com/article/us-autos-tesla-batteries-exclusive/exclusive-teslas-secret-batteries-aim-to-rework-the-math-for-electric-cars-and-the-grid-idUSKBN22Q1WC

What You Should Know About Today's Electric Car Batteries

 

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