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Why does a surplus of battery production exist when we have such a pressing need for grid level storage?

• LUmBULtERA 2y ago
  If the "oversupply" does occur, it would likely be temporary due to limits on the quantity that can be deployed per year. Grids in the US at least have very long interconnection queues. The technical and regulatory challenges that are limiting the deployments are being worked on.
  • vlovich123 2y ago
    Aside from that, prices can only dip for so long because investments were made assuming a specific price. Too much production means that prices go down and the investment becomes unprofitable which is only sustainable for so long - producers will either go out of business or cut back on production to lower their burn rate (at which point prices will go back up). Basic supply/demand curves tend to ignore the impact of pricing on investment. Larger suppliers might keep prices lower to try to acquire more market share but even they don’t have unbounded ability to run a loss forever and more importantly they’ll have a limited amount of capacity anyway which will cause prices to go back up anyway as the rest of the market cuts production.