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”
