Environment & Energy

madokie

(51,076 posts) Tue Mar 11, 2014, 04:15 AM Mar 2014

Tesla’s Giga Battery Factory Threatens the Auto, Utility and Building Controls Markets

Cheaper batteries will allow mainstream pricing of Tesla’s EVs in six years—and lots more.

Tesla’s Giga factory aims to reduce the cost of lithium-ion batteries by 30 percent in three years and 50 percent by 2020. This big, bold move invites historical comparison.

Henry Ford’s massive factory scale and vertical integration cut the cost of internal combustion-based cars by more than half, made Ford Motor Company the (then) biggest car company in the world, and helped bolster the American middle class in the process. A hundred years later, China’s use of scale economies and vertical integration made it the global market leader in solar PV in less than a decade -- and reconfirmed the power of scale and vertical integration.

But what does Tesla’s Giga factory really mean? Let’s start with the obvious: cheaper batteries will allow mainstream pricing of Tesla’s EVs in six years. That’s consistent with Musk’s vision to put an EV in every garage. Mainstream pricing will turn Tesla into a massive company.

Sure, Tesla’s competitors are big and confident -- just like Apple’s competitors when Steve Jobs announced his vision to put a PC on every desktop. As was the case with Apple in 1976, Tesla won’t need to worry about cannibalizing sales of existing products. Competitors with smoke spewing from their corporate tailpipes face a far more complex transition. Just as Digital Equipment Corporation failed to make the turn from mini computers to PCs, some big and famous car companies might not make the curve in the road to EVs.

http://www.greentechmedia.com/articles/read/Teslas-Giga-Battery-Factory-Threatens-the-Auto-Utility-and-Building-Contr

In my own personal opinion this could be the next big, next step, in cheaper to the consumer energy development.

16 replies

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Tesla’s Giga Battery Factory Threatens the Auto, Utility and Building Controls Markets (Original Post) madokie Mar 2014 OP

I want to thank you for bringing these developments to light. NYC_SKP Mar 2014 #1

Bless him for being an old-style entrepreneur. riqster Mar 2014 #2

Fyi. .Tesla himself has been dead since 1943.. pipoman Mar 2014 #8

Yah hey, he wasn't the entrepreneur mentioned in the article. riqster Mar 2014 #10

Its interesting, and promising quakerboy Mar 2014 #3

I'd encourage people to really read the section on V2B. riqster Mar 2014 #4

That's an aspect of V2G as originally envisioned... kristopher Mar 2014 #12

Fascinating, and new to me. riqster Mar 2014 #13

If you want to know more... kristopher Mar 2014 #14

Thank you, I will! riqster Mar 2014 #15

The govt should partner in this. grahamhgreen Mar 2014 #5

Why? oldhippie Mar 2014 #11

To further lower costs. To make money for the govt. For silent military vehicles. grahamhgreen Mar 2014 #16

They currently have a beautiful design liberal N proud Mar 2014 #6

Keep an eye on Tesla for the future "Model E" KeepItReal Mar 2014 #7

In addition to vehicles, this would make on site pipoman Mar 2014 #9

NYC_SKP

(68,644 posts)

1. I want to thank you for bringing these developments to light.

Reply to madokie (Original post)

Tue Mar 11, 2014, 04:26 AM

Mar 2014

It's why I belong to this community, news that matters that I wouldn't find elsewhere.

Thank you.

riqster

(13,986 posts)

2. Bless him for being an old-style entrepreneur.

Reply to madokie (Original post)

Tue Mar 11, 2014, 05:55 AM

Mar 2014

The type who understand that risk and reward are joined at the hip. Progress happens because of people like him.

I'm still thinking "Volt " for my next car, but that too will benefit from the market shift he is creating.

pipoman

(16,038 posts)

8. Fyi. .Tesla himself has been dead since 1943..

Reply to riqster (Reply #2)

Tue Mar 11, 2014, 08:10 AM

Mar 2014

riqster

(13,986 posts)

10. Yah hey, he wasn't the entrepreneur mentioned in the article.

Reply to pipoman (Reply #8)

Tue Mar 11, 2014, 08:30 AM

Mar 2014

Had you read the OP, you'd know that it's Elon Musk, whose car company is named after the famed inventor.

quakerboy

(13,920 posts)

3. Its interesting, and promising

Reply to madokie (Original post)

Tue Mar 11, 2014, 06:01 AM

Mar 2014

I hope Tesla is successful in its venture into battery making, but I could wish for a less environmentally destructive storage system than lithium batteries when looking at grid scale application. Maybe something with water/gravity or air compression.

I can see why they would develop this in this direction, and its almost certainly better than coal plants, but I wish we were looking for an even better solution. Makes me think of the recent Lord of the Rings movies.. they were good, they could have been better. But because they exist, it will be years before anyone approaches the project again.

riqster

(13,986 posts)

4. I'd encourage people to really read the section on V2B.

Reply to madokie (Original post)

Tue Mar 11, 2014, 06:18 AM

Mar 2014

A potential paradigm shift of a high order.

kristopher

(29,798 posts)

12. That's an aspect of V2G as originally envisioned...

Reply to riqster (Reply #4)

Tue Mar 11, 2014, 06:03 PM

Mar 2014

...since the grid of the future will consist of linked 'microgrids'.

The electrification of our personal transportation fleet is an important aspect of the shift to variable energy sources and distributed generation.

riqster

(13,986 posts)

13. Fascinating, and new to me.

Reply to kristopher (Reply #12)

Tue Mar 11, 2014, 06:19 PM

Mar 2014

kristopher

(29,798 posts)

14. If you want to know more...

Reply to riqster (Reply #13)

Tue Mar 11, 2014, 06:23 PM

Mar 2014

Willett Kempton is the originator and person who has brought the idea to where it is. His university website has most of his technical papers going back about 10 years. Google Kempton V2G.

riqster

(13,986 posts)

15. Thank you, I will!

Reply to kristopher (Reply #14)

Tue Mar 11, 2014, 06:38 PM

Mar 2014

grahamhgreen

(15,741 posts)

5. The govt should partner in this.

Reply to madokie (Original post)

Tue Mar 11, 2014, 06:36 AM

Mar 2014

oldhippie

(3,249 posts)

11. Why?

Reply to grahamhgreen (Reply #5)

Tue Mar 11, 2014, 10:38 AM

Mar 2014

Do you think the govt would speed things up?

Elon Musk is not exactly hurting for financing for this project. He isn't being limited by govt roadblocks. I would think the last thing he would want in this project is any government involvement. He seems to do pretty well on his own.

grahamhgreen

(15,741 posts)

16. To further lower costs. To make money for the govt. For silent military vehicles.

Reply to oldhippie (Reply #11)

Tue Mar 11, 2014, 11:38 PM

Mar 2014

To help propel us to a clean energy future. To help america become the world leader in battery tech.

liberal N proud

(60,335 posts)

6. They currently have a beautiful design

Reply to madokie (Original post)

Tue Mar 11, 2014, 06:59 AM

Mar 2014

Put a price tag on it I can afford and I would consider one. At least for a local vehicle. Not confident about all electric for log distance until there is some method for fast charging.

Hope they are successful and can force the others to do something that will wean us off oil!

KeepItReal

(7,769 posts)

7. Keep an eye on Tesla for the future "Model E"

Reply to liberal N proud (Reply #6)

Tue Mar 11, 2014, 07:48 AM

Mar 2014

The Model E is gonna be more affordable than the model S and model X.

Tesla' supercharger network already can allow you to drive coast to coast. It will have even better coverage by the time the Model E launches.

pipoman

(16,038 posts)

9. In addition to vehicles, this would make on site

Reply to madokie (Original post)

Tue Mar 11, 2014, 08:13 AM

Mar 2014

Energy storage more reasonable for residential wind and solar units.

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