Tesla Battery Pack
Tesla Battery Pack

Tesla Battery | No.1 reason why the EV maker dominates the Industry

A recent report reveals: Tesla battery cells are the lowest in terms of cost/kWh on the market.

In many ways, the superiority over other automakers can almost be down to the Tesla Battery pack. A recent study indicates that the price of the cells that form the Californian EV brand gives it a significant advantage over most other manufacturers

If one factor defines the cost of an EV and its highest cost presently relative to its fossil fuel-powered equivalent, that has to be the cost of the battery pack that goes into the vehicle. 

Although most manufacturers are increasingly looking to third-party suppliers who assemble the battery packs for BEVs, Tesla had, from the outside, focused heavily on the creation and production of this critical component of the vehicle.

To avoid delays concerning procurement of the batteries due to supply chain glitches, Tesla even set up a separate production line along with Panasonic IN-House to manufacture the Li-Ion cells needed for Tesla cars.

Tesla’s way ahead of the competition

According to a CNBC report, a study carried out by Cairn Energy Research Advisors, which looked specifically at the cost of manufacturing battery packs, revealed that Tesla is currently at a significant price advantage compared to its completion.

The media publishes that “Tesla pays an average of $142 per kilowatt-hour (kWh) for cells purchased from its three suppliers: Panasonic, LG Chem, and CATL.” 

According to the US source, “GM pays an average of $169 per kWh, while the industry average is around $166 per kWh.” 

What all this translates to is that Tesla is undercutting the entire market by having the ability to manufacture the battery packs at a much lower cost when compared to its competition.

The Cairns data cited by CNBC suggest that Tesla’s battery packs cost an average of $187 per kWh, whereas General Motors’s cost is $207 per kWh, and the market averages $246 per kWh. 

Sam Jaffe, CEO of Cairn Age, concludes by referring to Tesla’s global revolution by saying: “Look at what they’re doing in Shanghai and Berlin and now in Austin, Texas. They’re all accumulating factory after factory.”

Source: CNBC