This is it people!. Game over for ICE carmakers.
Tesla is said to have figured out how to equip it’s cars with battery packs jointly developed with Contemporary Amperex Technology Co Ltd (CATL), that is cheaper than the $100/kWh level, which will allow Tesla vehicles reach parity with internal combustion engine vehicles.
In February, Tesla Inc and Contemporary Amperex Technology Co Ltd (CATL) were in talks to use batteries from CATL which use no cobalt, the most expensive metal in EV batteries. The result of that talk has now finally surfaced.
CATL China is a battery maker that Tesla has been working with along side Panasonic and LG Chem South Korea. CATL is also reported to have developed a low-cost way of packaging battery cells, known as cell-to-pack. This method is said to remove the middle step of bundling cells. This CATL technology will help Tesla to reduce battery weight and eliminate cost.
According to an exclusive article by Reuters: The new “million mile” battery at the centre of Tesla’s strategy was jointly developed with China’s Contemporary Amperex Technology (CATL) and deploys technology developed by Tesla in collaboration with a team of academic battery experts recruited by Mr Musk, three people familiar with the effort said.
In 2019, Auto industry executives suggested that any electric carmaker that can figure out how to make a battery pack that cost $100/kWh or less, will be the first electric carmaker to take on ICE carmakers one on one.
As Tesla CEO Elon Musk has been teasing investors since the beginning of the year, Tesla Battery Day is surely expected to blow minds.
Between now and 2021, Tesla is said to plan to introduce into China market, a low-cost Model 3 equipped with a million miles capable newly designed battery. The newly designed batteries with state of the art technology will allow them the capability of connecting to and sharing power with the grid.
Tesla is about to change the game for good, and stay atleast 5 years ahead of competition for many years to come. Eventually, the optimized newly reported battery, with greater energy density, storage capacity, and lower cost, will be put in all Tesla vehicles. A Game Over for ICE competitors.
Let’s remind you that in February after Tesla signed a battery supply agreement with CATL, CATL said in the stock exchange filing that the arrangement does not place any limits on Tesla’s purchasing volume. Something bigger is come.