Tesla New Landmark Batteries Could Put An End To Combustion Engine Cars

Tesla has long been struggling for a future when its electric cars can be sold at the same price their combustion engine counterparts.

A recent report by Reuters suggests the company might reach that day sooner than we think with its new durable and low-cost batteries, introduced in the Model 3 sedan.

As Tesla has long been the king in the EV sector, this piece of news might threaten the existence of a lot of other carmakers.

This report is thought to reveal what Elon Musk, CEO of Tesla, has been teasing all along. What he is preparing the audience for is “Battery Day,” an event set to take place in June. Musk said this would be one of the most exciting days in the company’s history.

Elon Musk has mentioned more than once the biggest obstacle preventing Tesla from selling its EVs at a competitive price compared to combustion engine cars is the cost per kilowatt-hour. This is the main reason why electric cars have not seen mass adoption yet.

What excites Musk about the new battery is not only a huge boost in sales but also an application in the power grid where his company’s invention can be a storage device.

According to Reuters’ report, to lower the cost of its vehicles, Tesla is focusing on a few essential changes.

The first is the alteration of coating and chemical composition to increase the efficiency of the batteries and make it possible to turn them into power storage.

The second change is to reduce the amount of cobalt, the most expensive part of any EV batteries. To further drive down costs, Tesla is working with Redwood Materials to recycle the cobalt in batteries.

The last change is to encourage automation in battery manufacturing, which can cut costs and accelerate production.

According to some experts in the field, EV batteries need to have a price of approximately $100 per kilowatt-hour so that automakers can sell their cars at a price that can compete with traditional combustion engine vehicles.

With what the company has done, many estimate the new batteries could reach a price of as low as $80 per kWh.

By lowering the cost of making batteries, and then the price to make the car itself, Tesla will not only drive up sales but also achieve a larger profit margin.

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