Tesla is planning on massively scaling batteries. The first part of this is to improve the production with Tesla's factories. The second area is raw materials and the biggest risk factor is Lithium. Lithium mining won't keep up. Tesla is trying to unlock this bottleneck. Let's see how.

Tesla is a rare company that does great short-term execution and extremely long-term strategic planning. Typically, it is hard to focus on short-term and long-term at the same time. Usually a company will have to choose one at the expense of the other. It is remarkable that Tesla thinks 10 to 20 years in the future.

Drew Baglino, V.P of Power Train at Tesla says that if the industry stays on pace of growing 50% year over year for electric vehicles and batteries, that it seems possible that 300 to 500 T.W.h. of batteries will be built in the next 20 years globally. This means Tesla will need 15-20 T.W.h. of annual global battery capacity.

Drew's first approach to massive scaling batteries is to increase the battery output of Tesla's factories. This comes down to engineering processes, more efficient assembly lines, more efficient electrode processing. It's all about making a factory do 2 times, 5 times, 10 times, or more output from the same factory.

If Tesla can scale batteries and scale the cost significantly, they will have a huge competitive advantage going forward.

Raw Materials and Mining.
Drew says that the real challenge to scaling is raw materials. He talks about the key things that could be done to enable this. The biggest risk at the moment is Lithium. If you look 5 to 10 to 20 years down the road, there is not enough investment in Lithium mining to keep up with the needs of the future. Tesla has a goal of 20 million vehicles per year in 2030. They know exactly how many raw materials they will need to get there.

Source: Re-posted and Summarized from Jeremy Johnson at torquenews.

My Take: With Tesla making long term plans like this, how could anybody else keep up?

Re Posted From: Tesla Plans to Massively Scale Battery Production

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Tesla is planning on massively scaling batteries. The first part of this is to improve the production with Tesla's factories. The second area is raw materials and the biggest risk factor is Lithium. Lithium mining won't keep up. Tesla is trying to unlock this bottleneck. Let's see how.

Tesla is a rare company that does great short-term execution and extremely long-term strategic planning. Typically, it is hard to focus on short-term and long-term at the same time. Usually a company will have to choose one at the expense of the other. It is remarkable that Tesla thinks 10 to 20 years in the future.

Drew Baglino, V.P of Power Train at Tesla says that if the industry stays on pace of growing 50% year over year for electric vehicles and batteries, that it seems possible that 300 to 500 T.W.h. of batteries will be built in the next 20 years globally. This means Tesla will need 15-20 T.W.h. of annual global battery capacity.

Drew's first approach to massive scaling batteries is to increase the battery output of Tesla's factories. This comes down to engineering processes, more efficient assembly lines, more efficient electrode processing. It's all about making a factory do 2 times, 5 times, 10 times, or more output from the same factory.

If Tesla can scale batteries and scale the cost significantly, they will have a huge competitive advantage going forward.

Raw Materials and Mining.
Drew says that the real challenge to scaling is raw materials. He talks about the key things that could be done to enable this. The biggest risk at the moment is Lithium. If you look 5 to 10 to 20 years down the road, there is not enough investment in Lithium mining to keep up with the needs of the future. Tesla has a goal of 20 million vehicles per year in 2030. They know exactly how many raw materials they will need to get there.

Source: Re-posted and Summarized from Jeremy Johnson at torquenews.

My Take: With Tesla making long term plans like this, how could anybody else keep up?

Re Posted From: Tesla Plans to Massively Scale Battery Production

Auto Helpers