New Battery Development and Pricing
CATL has new rectangular LFP batteries which will be available in 6 months. The Iron LFP EV battery price will be less than $56 per kWh within six months. It is a bigger rectangular battery with each one being like six Tesla 4680 batteries. Tesla also buys Iron LFP batteries from CATL and those are $70 per kWH now. The Tesla cylindrical Iron LFP batteries will also drop to $56 per kWH within 12 months. China Iron LFP batteries are heading to $36 per kWh within 24-36 months.
Tesla’s Production Capability
Tesla will also be able to produce its own 4680 Iron LFP batteries within 24-36 months.
Impact on Cost and Margins
These battery price reductions will help Tesla lower cost and increase margins.
Cost Savings from Battery Price Reductions
Every $14 per kWh drop in battery price is about $800 of cost removed from an EV.
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About the Author
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.