“Over the last few years, Tesla has been making a lot of moves related to batteries.
We are talking about buying companies like Maxwell and Hibar, and applying for patents on new technology, like a tabless battery cell and a cell to pack design.
While all these moves were mostly evaluated on their own merits, it wasn’t clear how all those things would fit together.
That’s exactly what Tesla demonstrated at its Battery Day.
Tesla explained how they have made major improvements in five key aspects of batteries:
Cell design, specifically form factor.
Battery cell factory design with manufacturing innovations
New anode materials
New cathode materials
New battery pack design
And then, by combining all these things together, Tesla achieves a battery cost breakthrough with a 56% reduction in cost per kWh:
What is most impressive is how all those innovations work together. Each result in an incremental improvement to battery technology, but if you combine them together, you get breakthrough-level performance and cost:
Tesla has the ambition to become a truly globally significant car company. The much-hyped battery day supplied a long list of potential solutions to achieve that goal. The challenge is what is being suggested is complicated to begin with and that is before the manufacturing headaches have been fully appreciated. Above all else building out cell manufacturing capacity to the scale suggested is going to be expensive.Click HERE to subscribe to Fuller Treacy Money Back to top