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The Big Business Of Energy For The EV Industry

CNBC・47 minutes read

Tesla Energy is pushing for full electric use, focusing on batteries and raw materials like lithium, with projects like the Megapack utility system with Pge in California. The global trend is shifting towards battery production, impacting transportation and potentially reshaping the grid, with a push for domestic supply chains highlighted by President Biden's executive order.

Insights

Tesla Energy is a key player in the energy storage sector, leveraging lithium-ion batteries to create scalable solutions like the Megapack, which have demonstrated reliability and cost-effectiveness in various projects globally, showcasing a commitment to sustainable energy solutions.
The battery industry is undergoing significant growth and transformation, with a focus on advanced technologies like lithium metal batteries and bio batteries powered by soil microorganisms, indicating a shift towards prioritizing batteries as a critical component for the future of transportation and energy production, with implications for global supply chains and national security.

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Recent questions

What is Tesla Energy's focus?
Sustainability and battery technology.
What is the expected growth of the grid-scale battery storage market?
$15 billion by 2027.
What are the challenges in lithium-ion battery production?
Costs and supply concerns.
What is the focus of Bio's bio battery technology?
Regenerative agricultural practices.
What is the significance of battery production in the US?
National security and supply chain risks.

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Summary

00:00

Tesla Energy Leading Charge in Battery Revolution

Tesla Energy is setting a target to be fully electric, emphasizing the importance of batteries and raw materials like lithium.
Tesla is producing energy consistently day and night, regardless of weather conditions.
The industry is undergoing a transformation comparable to the impact of oil on fueling when it comes to cost reduction.
Tesla is working with Pge to install a Megapack utility scale battery storage system in Moss Landing, California.
Demand for large-scale storage systems is increasing globally, with the grid-scale battery storage market expected to reach $15 billion by 2027.
Tesla Energy is expected to be as significant as Tesla Automotive, with deep knowledge of battery technology and smart systems like auto bidder.
Lithium-ion batteries are currently the most cost-effective for utility-scale storage, with costs decreasing by about 90% in the past decade.
Tesla's energy storage solutions, like Powerwall and Powerpack, are designed to work seamlessly with solar systems and have been successful in various projects worldwide.
Tesla's projects in Australia and American Samoa have demonstrated the reliability and cost-effectiveness of lithium-ion battery storage systems.
Tesla's Megapack, with up to three megawatt hours of storage, is a scalable solution that can power entire communities, showcasing the company's commitment to sustainable energy solutions.

14:12

Tesla and Apple collaborate on renewable energy

Tesla is collaborating with Apple to construct a 240 megawatt hour megapack at its California solar farm to power its headquarters in Cupertino and facilities in Texas.
The Megapack site in Moss Landing, California, is anticipated to be finished by the end of summer, with a capacity of 182.5 megawatts.
California is a leading producer of renewable energy and initiated energy storage programs to manage excess renewables, aiming for 580 megawatts online by 2024.
Tesla's energy revenues in Q1 2021 were $494 million, with costs at $595 million, but energy storage deployments surged by 83% from 2019 to 2020, driven by the Megapack's popularity.
Tesla's Megapack undergoes UL 9548 burn tests, ensuring self-extinguishing in case of a fire, offering cost savings to customers.
Tesla's energy storage business profitability remains uncertain despite successful deployments and a promising future in the energy sector.
The transition to renewable energy and lithium-ion batteries will reshape the grid, presenting opportunities for various companies in the energy transition.
Challenges persist in lithium-ion battery production due to costs and supply concerns, with Tesla exploring cobalt-free battery options.
Bio is developing biological batteries powered by soil microorganisms, offering a sustainable and cost-effective alternative to chemical batteries for agricultural sensors.
Bio's innovative bio batteries utilize organic matter breakdown to generate constant energy, potentially revolutionizing energy production and storage in the future.

27:47

Innovative Bio Batteries Revolutionize Energy Production

Panels in the lab produce about 3.7 watts of power per square foot, a quarter of average solar panel efficiency.
Soil is used as a conductor of electrical current, posing challenges compared to lithium ion batteries.
Strategies to enhance cell conductivity, communication between microorganisms and electrodes, and soil resistance are engineering feats.
Sensor technology is suggested as a starting point for low-power applications like powering sensors.
Bio battery technology aims to be licensed to agricultural companies for mass market adoption.
The European Union has invested €2.5 million in the company, significantly more than private funding.
Bio battery technology is targeted towards regenerative agricultural practices, with farmers showing interest.
Kubrick is developing lithium metal batteries for aviation, aiming for twice the energy density of lithium ion.
Kubrick's liquid electrolyte technology allows for compatibility with existing lithium ion production methods.
The Biden administration is focusing on scaling up EV battery manufacturing in the US.

40:57

"US Battery Industry Expansion and Challenges Ahead"

Northvolt, headquartered in Stockholm, aims to expand its presence in the US battery industry.
The battery industry is projected to grow significantly in the coming years, creating a need for advanced technologies like lithium metal.
Various battery companies, including Cuba, have raised substantial funds and are focusing on innovative technologies.
Major automakers like Ford and General Motors are transitioning towards electric vehicles, setting a goal to be fully electric by 2035.
The US lags behind in battery production compared to China, which has a significant lead in manufacturing capacity.
The US faces a shortage of battery production facilities, hindering automakers from meeting their electric vehicle targets.
The SK Innovation battery plant in Georgia, facing a ban due to an intellectual property dispute, is crucial for the US battery industry.
Experts emphasize the need for a robust domestic supply chain for battery production, starting from mining raw materials in the US.
President Biden's executive order highlights the importance of addressing supply chain risks for EV batteries.
The global focus on battery production signifies a shift towards prioritizing batteries as a critical component for the future of transportation.

54:54

Battery recycling challenges and future predictions

Startups in the U.S. are working on recycling lithium ion batteries to recover materials for new batteries, but currently, it's more cost-effective to mine lithium. This trend is expected to continue for at least the next decade, leading to a battery shortage as automakers increase EV production to meet fuel economy standards. By 2025, as battery costs decrease, consumer demand for EVs is predicted to rise, reducing the need for subsidies. The industry is driven by emissions regulations and policies, with the battery manufacturing sector expected to diversify globally, reducing the Asia-Pacific's dominance from 90% to 60% in the next 20 years. The Biden administration is likely to prioritize national security by boosting battery manufacturing in North America.

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