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The battery cells inside the Gigafactory are created by Panasonic. So far it looks very unlikely that the Gigafactory will be able to produce battery cells at a
by gizmo 10y ago
The battery cells inside the Gigafactory are created by Panasonic. So far it looks very unlikely that the Gigafactory will be able to produce battery cells at a substantially reduced cost when they're relying on subcontractors for all parts. Innovation in batteries is really hard. We've had lithium-ion batteries for nearly 50 years now, and they're just not improving that quickly. We'll get 5% a year improvements for the next decade if we're lucky. The Gigafactory won't change this. So I don't see how the Gigafactory will be a lasting competitive advantage.
- Eridrus 10y agoNo source, but I saw some comments here or on Reddit saying that getting batteries in the large quantities you need for EVs is very difficult. Tesla's Gigafactory allows them to not have to compete for that supply, which may give them a price advantage over others buying from Panasonic.
- gizmo 10y agoBattery manufacturers are already preparing for the electrical car revolution. Even if li-ion cells are supply constrained today, they won't be 5 years from now.
- Baeocystin 10y agoInnovation is batteries is hard. Which is why it is all the more impressive that lithium-ion costs have plummeted in the past few years. http://analysis.energystorageupdate.com/lithium-ion-costs-fall-50-within-five-years http://analysis.energystorageupdate.com/lithium-ion-costs-fa...
- check_muk 10y agoTesla is now claiming 35% battery cost reduction at ‘Gigafactory 1’ – hinting at breakthrough cost below $125/kWh. Read this: https://electrek.co/2017/02/18/tesla-battery-cost-gigafactory-model-3/ https://electrek.co/2017/02/18/tesla-battery-cost-gigafactor...