https://www.reuters.com/article/us-...-for-electric-cars-and-the-grid-idUSKBN22Q1WC Exclusive: Tesla's secret batteries aim to rework the math for electric cars and the grid Norihiko Shirouzu, Paul Lienert (Reuters) - Electric car maker Tesla Inc (TSLA.O) plans to introduce a new low-cost, long-life battery in its Model 3 sedan in China later this year or early next that it expects will bring the cost of electric vehicles in line with gasoline models, and allow EV batteries to have second and third lives in the electric power grid. New, low-cost batteries designed to last for a million miles of use and enable electric Teslas to sell profitably for the same price or less than a gasoline vehicle are just part of Musk’s agenda, people familiar with the plans told Reuters. With a global fleet of more than 1 million electric vehicles that are capable of connecting to and sharing power with the grid, Tesla’s goal is to achieve the status of a power company, competing with such traditional energy providers as Pacific Gas & Electric (PCG_pa.A) and Tokyo Electric Power (9501.T), those sources said. The new “million mile” battery at the center of Tesla’s strategy was jointly developed with China’s Contemporary Amperex Technology Ltd (CATL) (300750.SZ) and deploys technology developed by Tesla in collaboration with a team of academic battery experts recruited by Musk, three people familiar with the effort said. Eventually, improved versions of the battery, with greater energy density and storage capacity and even lower cost, will be introduced in additional Tesla vehicles in other markets, including North America, the sources said. Tesla’s plan to launch the new battery first in China and its broader strategy to reposition the company have not previously been reported. Tesla declined to comment. Tesla’s new batteries will rely on innovations such as low-cobalt and cobalt-free battery chemistries, and the use of chemical additives, materials and coatings that will reduce internal stress and enable batteries to store more energy for longer periods, sources said. Tesla also plans to implement new high-speed, heavily automated battery manufacturing processes designed to reduce labor costs and increase production in massive “terafactories” about 30 times the size of the company’s sprawling Nevada “gigafactory” — a strategy telegraphed in late April to analysts by Musk. Tesla is working on recycling and recovery of such expensive metals as nickel, cobalt and lithium, through its Redwood Materials affiliate, as well as new “second life” applications of electric vehicle batteries in grid storage systems, such as the one Tesla built in South Australia in 2017. The automaker also has said it wants to supply electricity to consumers and businesses, but has not provided details. Reuters reported exclusively in February that Tesla was in advanced talks to use CATL’s lithium iron phosphate batteries, which use no cobalt, the most expensive metal in EV batteries. CATL also has developed a simpler and less expensive way of packaging battery cells, called cell-to-pack, that eliminates the middle step of bundling cells. Tesla is expected to use the technology to help reduce battery weight and cost. The sources said CATL also plans to supply Tesla in China next year with an improved long-life nickel-manganese-cobalt (NMC) battery whose cathode is 50% nickel and only 20% cobalt. Tesla now jointly produces nickel-cobalt-aluminum (NCA) batteries with Panasonic (6752.T) at a “gigafactory” in Nevada, and buys NMC batteries from LG Chem (051910.KS) in China. Panasonic declined to comment. Taken together, the advances in battery technology, the strategy of expanding the ways in which EV batteries can be used and the manufacturing automation on a huge scale all aim at the same target: Reworking the financial math that until now has made buying an electric car more expensive for most consumers than sticking with carbon-emitting internal combustion vehicles. “We’ve got to really make sure we get a very steep ramp in battery production and continue to improve the cost per kilowatt-hour of the batteries — this is very fundamental and extremely difficult,” Musk told investors in January. “We’ve got to scale battery production to crazy levels that people cannot even fathom today.” Tesla has reported operating profits for three quarters in a row, driving a near-doubling of its share price this year. Still, Musk’s ambitious expansion plans depend on increasing both profit margins and sales volume. A number of the technical advances made by Tesla and CATL in battery chemistry and design originated at a small research lab at Dalhousie University in Halifax, Nova Scotia. The lab has been run since 1996 by Jeff Dahn, a pioneer in the development of lithium-ion batteries for electric vehicles and grid storage. Dahn and his team began an exclusive five-year research partnership with Tesla in mid-2016, but the relationship dates back at least to 2012. Among the critical contributions from Dahn’s lab: Chemical additives and nano-engineered materials to make lithium-ion batteries tougher and more resistant to bruising from stress such as rapid charging, thus extending their life. The cost of CATL’s cobalt-free lithium iron phosphate battery packs has fallen below $80 per kilowatt-hour, with the cost of the battery cells dropping below $60/kWh, the sources said. CATL’s low-cobalt NMC battery packs are close to $100/kWh. Auto industry executives have said $100/kWh for battery packs is the level at which electric vehicles reach rough parity with internal combustion competitors. Battery expert Shirley Meng, a professor at the University of California San Diego, said NMC cells could cost as little as $80/kWh once recycling and recovery of key materials such as cobalt and nickel is factored in. Iron phosphate batteries, which are safer than NMC, could find a second life in stationary grid storage systems, reducing the upfront cost of those batteries for electric vehicle buyers. In comparison, the new low-cobalt batteries being jointly developed by General Motors Co (GM.N) and LG Chem are not expected to reach those cost levels until 2025, according to a source familiar with the companies’ work. GM declined to comment on its cost targets. Earlier this year, it said only that it planned to “drive battery cell costs below $100/kWh” without specifying a timetable.
Total bullshit article "placed" by a corporate PR team. What a disgrace that a famed media organization like Reuters would prostitute itself like this. No mention of the mile-long list of Musk's vaporware. Off the top of my head - the solar roof, the semi, the hyperloop, the Alien Dreadnought automated factory, the Gigfactory powered by solar panels, the $35k model 3, the fleet of one million fully autonomous self-driving robotaxis appreciating in value over time. Alert readers will notice the increasing tie-ins with China. Expect much more of this going forward as Musk finds that doing "business" in China makes it much easier to avoid scrutiny, so long as he retains favor with the Emperor. Also, I do not believe for a second that Tesla itself has made any kind of fundamental breakthrough in battery design or tech. Prove me wrong.
Good points, generally easily spotted, though this type of "news" is exactly what traders look for, feed on, and want to be aware of. Lots of companies announce vaporware and bs "news" every day (recently various thermal cameras for detecting sick people), and traders trade on those news, especially when they can determine the amount of bs. On another hand, some stuff may materialize in the distance future. No one believed that Tesla will get as far as it did already, even with just their stock price.
So, Joe Commuter charges his Tesla overnight. Leaves for work in the morning at 100%, arrives at the office at 87% - then gets in his car to go home in the evening... finds his Tesla at 23% because Tesla has discharged his battery in order to sell the power to the PG&E grid at a premium for mid-day and afternoon peak power air conditioning demand. Sure hope he was going straight home after work. Because peak demand doesn't come off until about 7:00pm and Tesla isn't going to give him his own electricity back during peak demand hours.
A close friend of mine works for TSLA and has since about 2011. At the time I looked at whether to buy the stock. It was apparent that while the company could become very successful and nicely profitable in the luxury market, mass-market carmaking is a shitty business. Either way the growth was priced in, with no margin of safety. That analysis has been shown to be pretty much spot-on in the decade since. What's changed is my quaint belief that the stock market has to reflect fundamental value on even longish time scales (5+ years).
Like most members of our gender we hate to admit we wrong. You did not take into account that Musk was creating a new category based upon clean air etc +his one of a kind persona was to be reflected in the stock price.
Elon Musk is a Cylon. People who use internal-combustion engines from the 1970s are Adama-like. It helped save the human race back then, so why not now?
so I pay for electricity & get a check for selling back to the grid? How does this work when peak demand is when I'm most likely to need the electricity for driving? How will the economics make sense if I'm not selling at a profit and is likelier better to just store the energy for future use? This sounds like another one of Elon's whole lotta nothin'