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Re:Electric vehicle battery costs rapidly declining, Tesla c... by narrator on Tuesday June 07, 2016 @04:15PM (#11857436)
I find it amusing to see so many people questioning why Tesla didn't release a cheap Tesla sooner. The answer is: They don't have the batteries to do that. That's why they are building the GigaFactory.

People don't get that, on a large industrial scale, you actually have to think about supply. They think you just spend money and supply shows up because they are used to thinking on a household scale where supply is generally infinite for anything they could possibly consume.

I think one pervasive economic fallacy is that any amount of money can fix anything. We just need to find someone to write a big enough check, either the government or wall street and all those batteries will materialize instantly out of some technology horn of plenty. This has driven the focus on "stimulus" and "aggregate demand" in various forms of economic dialogue. We could use more supply side thinking about very large problems that the economy faces, especially in the public sector. Health Care, for example, is one of those things where, if you're not thinking about supply, spending more money just makes everything more expensive.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by walrus01 on Tuesday June 07, 2016 @05:34PM (#11858082)
Energy STORAGE is a huge bottleneck issue for anyone that follows renewable energy news as well... Solar power itself has been cheap enough to be viable for a long time, 330W 72-cell panels for roofs have been $0.64/watt for several years now. You can quite economically cover the roof of a building in enough high-efficiency 60 or 72-cell panels to generate far more kWh in a year than the building will consume in the same year, but the problem is storage for when the sun isn't shining. It's easy to produce 1600kWh/month from solar panels on a roof, if your house only consumes 1200-1400kWh/month, but you need to use many of your 1200-1400 kWh/month at night.

Off grid energy storage has been severely hampered by the lifecycle cost of $ per kWh stored. Lead acid batteries suck, lithium ion/liPo has until very recently been very expensive in $/kWh. Other energy storage systems have been limited in scale or are only feasible at very specific places, such as large scale pumped-storage hydroelectricity.

If the cost of $$$/kWh stored comes down far enough, it will be entirely possible to build a home that has no connection to the electrical grid at all. Assume this prototypical home is in an American city where electricity from the grid costs 8 cents per kWh. If you make a refrigerator sized battery low enough cost it may be possible with TODAY's cost of solar panels to have a lifecycle cost of 6 cents per kWh consumed. While simultaneously having the effect of making that home energy-independent from the grid and the whole thing being its own immense UPS.

The powerwall is the first step towards this.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by nl on Tuesday June 07, 2016 @11:42PM (#11859840)
Flow Batteries[1]!

They work (as in: are being used in Africa & South America to power mobile networks). Also my (office) building is powered by one.

They don't cost much more than lead-acid

They last much, much longer than lead-acid or lithium*

There is no limit to the number of power cycles(!!) and they can be deep-discharged.

They do have disadvantages - they aren't suitable for cars, and are currently fairly noisy when cycling, and have lower power density than lithium* batteries. They also need to be periodically complete discharged (although most have software to make sure each individual cell does this as part of the normal use)

Disclaimer: An investor in Redflow owns my building (hence the power source)[2]

[1] https://en.wikipedia.org/wiki/Flow_battery

[2] http://redflow.com/

Re:Electric vehicle battery costs rapidly declining, Tesla c... by mavhc on Wednesday June 08, 2016 @02:52AM (#11860490)
167 Wh/l = 167kWh per cubic metre, say 16 hours of no sun, 16kW output at night, seems reasonable
Re:Electric vehicle battery costs rapidly declining, Tesla c... by masklinn on Wednesday June 08, 2016 @06:19AM (#11861203)
167Wh/l is a relatively recent prototype, Redflow uses the older zinc-bromide which is only around 70Wh/l.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by nl on Wednesday June 08, 2016 @05:45AM (#11861087)
Yep. Next time someone claims base load means renewables don't work do that math. Also point to the experience in developing countries where they don't have reliable base load, yet have similar uptime.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mavhc on Wednesday June 08, 2016 @09:42AM (#11862205)
Wind provides base load anyway, always windy somewhere
Re:Electric vehicle battery costs rapidly declining, Tesla c... by imaginenore on Wednesday June 08, 2016 @12:55PM (#11863661)
That's a bad argument. Arbitrary energy transportation is not a solved problem. Power grids are designed to deliver from power plants to the consumers.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by Yaggo on Wednesday June 08, 2016 @01:34AM (#11860241)
Interesting, haven't heard about such batteries being commercially sold. Any idea who sells those for private consumers in Europe?
Re:Electric vehicle battery costs rapidly declining, Tesla c... by beefield on Wednesday June 08, 2016 @05:48AM (#11861106)
Not sure about the private consumer part in Europe, but following seems to be in Austria:

http://www.bluesky-energy.eu/project/redflow-zinc-bromide-ba...

Re:Electric vehicle battery costs rapidly declining, Tesla c... by nl on Wednesday June 08, 2016 @05:42AM (#11861079)
I believe Redflow will have a consumer offering this year, (under another brand). Not sure about European availability.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by bubuga on Saturday June 11, 2016 @03:55AM (#11882569)
> Flow Batteries[1]!

From the wikipedia article, it appears that typical flow batteries only reach 10% to 20% of lithium polymer's power density.

That means that it would take a flow battery that weights 5 to 10 times as the standard lithium polymer batteries that equip a Tesla/Nissan Leaf/whatever electric car you imagine to deliver the same power.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by jseliger on Tuesday June 07, 2016 @06:02PM (#11858328)
Energy STORAGE is a huge bottleneck issue for anyone that follows renewable energy news as well

Very true, but, interestingly, large-scale electric vehicle adoption may help this: http://thinkprogress.org/climate/2016/05/09/3775606/used-sec... as lightly used car batteries may cease being attractive for use in cars but be very attractive in terms of base-load storage.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by walrus01 on Tuesday June 07, 2016 @06:07PM (#11858365)
Absolutely. It's all about the $/kWh stored. A "worn out" electric car battery might have only 70% of its cycle depth/capacity remaining compared to when it was new, but if the battery packs can be acquired for very cheap, that doesn't matter so much.

There is a guy with videos on youtube who has purchased battery packs from crashed Tesla Model S and retrofitted an old volkswagon bus for 100+ mile EV range.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by beamatronic on Tuesday June 07, 2016 @06:46PM (#11858620)
I would like to know more! Is this the incident in question?

http://insideevs.com/diy-project-salvaged-tesla-model-s-to-u...

"Joe’s “donor” Model S will be brought back to life by Otmar in the form of a stretched Volkswagen Vanagon called Strechla.

The Vanagon will exist only on the outside. On the inside, underside and everywhere in between, you’ll find Model S."

edit: added more words

Re:Electric vehicle battery costs rapidly declining, Tesla c... by walrus01 on Tuesday June 07, 2016 @06:50PM (#11858639)
it's this guy:

https://www.youtube.com/user/jehugarcia/videos

scroll down a bit into the older videos and you will see the VW.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by outworlder on Tuesday June 07, 2016 @06:42PM (#11858593)
Yes. He also had some packs made from salvaged battery cells.

And a battery trailer, inspected by the DMV.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by konschubert on Tuesday June 07, 2016 @06:47PM (#11858627)
The problem is that current batteries wear down on every charge cycle. This means that by charging and dis-charging a battery, it loses value, which means that there is a cost for each charge cycle.

I am too lazy to put numbers on this, but this cost is currently much too high to make it economically viable to use car batteries for energy storage.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by outworlder on Tuesday June 07, 2016 @07:23PM (#11858851)
That is a true statement. However, you should not compare car batteries (usually LiFePo, LiMn or whatever it is Tesla uses) with standard laptop batteries.

Electric car batteries can endure thousands of full cycles before their useful capacity drops down to 80%. That figure can be as high as tens of thousands, depending on who you ask.

Suprisingly, for LiMn, temperature and age have a much greater effect on lifetime than cycles.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by Retric on Tuesday June 07, 2016 @08:00PM (#11859033)
2,000 cycles sounds great, but at just once per day that's only 5.5 years. Grid storage needs to be really cheap AND last for 20-50 years. Which is why capacitors and pumped hydro are both used. Capacitors can discharge 1,000's of times a day to maintain the proper wave form and hydro can discharge 1-3 times a day to handle changing demand.

PS: The real advantage of hydro is you can invest in capacity or peak load as more or less separate things.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by PakG1 on Tuesday June 07, 2016 @10:29PM (#11859594)
2,000 cycles sounds great, but at just once per day that's only 5.5 years. Grid storage needs to be really cheap AND last for 20-50 years.

5.5 years is about the lifespan of servers in a datacenter. What's wrong with managing energy storage the way we manage datacenters? We don't expect servers to last 20-50 years. And no doubt, as battery tech improves, the lifespan will improve too. But the infrastructure to get good storage needs to start somewhere. Run them as datacenters for now while waiting for battery tech to get better.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by Retric on Wednesday June 08, 2016 @09:12AM (#11862010)
It's just a question of cost. If it's cheap and lasts for 50 years, great. If it's 1/8 the cost and lasts for 5.5 years that also works. But battery's are still a long way from cheap let alone 1/8th of cheap.

Don't forget computer investment has long operated under the assumption of rapidly declining prices. With that slowing data centers may go to a 10+ year cycle.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by outworlder on Tuesday June 07, 2016 @08:16PM (#11859115)
Controlling for state of charge, temperature and less deep cycles, it is likely that we can achieve your figures given current tech. The question is the price. If you are not fully using them, then you need more batteries. At which point it becomes economical requires some guesses and heavy number crunching.

I agree with you on hydro, gravitational storage is relatively simple to do. But it takes space. Batteries could make more sense for microgrids.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by ceejayoz on Tuesday June 07, 2016 @07:08PM (#11858762)
That's fine, though. If your car that used to do 300 miles on a charge can only do 200, you'll probably replace it.

That 200 mile charge may still be perfectly usable in a house, particularly given you can fit a couple cars worth into your basement without issues. The resulting battery cluster doesn't have to be particularly compact or light-weight.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by walrus01 on Tuesday June 07, 2016 @07:30PM (#11858884)
Car applications care about kilograms per kWh stored, and cubic volume per kWh stored. Stationary batteries, not so much.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by Cyph0n on Tuesday June 07, 2016 @08:02PM (#11859040)
Not as much, yes, but it's still important. Space is quite valuable even in a normal household.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by Teeboo on Wednesday June 08, 2016 @12:29AM (#11860025)
Space is only at a premium because it costs more to have more space.

The real question is "how much space are you willing to sacrifice for energy self-sufficiency?"

In the UK, electric bills hover around $1200 a year for electric/gas households and $2000 a year for full electric.

Renewable households will have a HUGE potential market.

U.K. Residential market is 26 million houses. Theoretical price point of $1500 dollars (one years energy cost) = 39 billion dollar market not including the massive combined secondary services in maintenance, installation training providers, parts, etc.

USA residential would be 6 times that and the provision of renewables to corporates is almost incalculable.

It's an entirely new economic ecosystem divorced from petrochemical.

It a price point higher than $3000 dollars we are getting into a market cap of many trillions worldwide.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by pjc50 on Wednesday June 08, 2016 @10:18AM (#11862406)
IF you can get a solar system and batteries for £1k, then that starts to look feasible. But that's a big if.

I had a 3.8kW solar system put in for £5k last year and have yet to really run the numbers on savings; the payback period is 10 years of feed-in tariff cheques. If I went off-grid that would be reduced. I don't really see why I'd want to go off-grid for its own sake, I'd rather better explore the possibilities of net metering and sharing power with the rest of the city.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by kirrent on Tuesday June 07, 2016 @07:01PM (#11858711)
If you continue to cycle the batteries as deeply as you were in the car this might be true but if you're willing to charge and discharge slower as well as cycle shallower the gain in life for a Li-ion battery is quite remarkable. Obviously you need more batteries but in general energy storage is just less harsh to batteries than use in cars.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by msandford on Tuesday June 07, 2016 @10:11PM (#11859542)
> but you need to use many of your 1200-1400 kWh/month at night

As air conditioning, but there are other solutions! Ice has neigh-infinite charge/discharge cycles and big institutions have been doing this for years. If your "campus" is more than a few hundred tons of AC it's probably cooled by ice.

It's not been terribly economical to do this at a small scale but as solar gets cheaper and batteries don't there are people working on the problem.

https://www.ice-energy.com/technology/

Re:Electric vehicle battery costs rapidly declining, Tesla c... by jacquesm on Tuesday June 07, 2016 @06:01PM (#11858313)
Roughly the same dynamics that relate cloud apps vs self hosted apps to reliability relates solar power and grid power to reliability. The grid is - for now - the cheapest battery there is, and it gives you immediate redundancy. It will be far more reliable than anything you install on your roof and in your basement on a per-case basis, even if a grid outage takes down your whole neighborhood, town, or even country.

Batteries, at whatever price you pay for them are a really in-efficient way to store and retrieve energy compared to the grid.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by walrus01 on Tuesday June 07, 2016 @06:05PM (#11858344)
The thing is, the grid from the perspective of an average residential user is actually not that reliable. In many places in the Pacific Northwest where trees fall on power lines in winter storms the grid does not meet five nines reliability (52 minutes or less outage per year). A properly implemented whole-building off grid battery system and a few inverters running in parallel can be much more reliable than this. The grid is subject to all sorts of failure modes from trees, landslides, flooded vaults and things involving the environment, while a PV system has no moving parts (perhaps except from a ventilation fan in an inverter), and a larger set up can be run with several inverters in parallel providing AC for a building.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by jacquesm on Tuesday June 07, 2016 @06:35PM (#11858538)
If you're still using above ground power lines for local distribution then that definitely would make a difference when it comes to reliability. Just like in Northern Ontario where our solar/wind homebrew solution was a lot more reliable than the local grid. Even so, in a developed country that's a choice, not a necessity.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by cma on Tuesday June 07, 2016 @08:32PM (#11859180)
Isn't it really cloudy in the Pacific Northwest during winter?
Re:Electric vehicle battery costs rapidly declining, Tesla c... by outworlder on Tuesday June 07, 2016 @05:59PM (#11858302)
How do the LiFePo batteries used in current electric cars change the equation? Not so great energy density, but can withstand an immense number of cycles.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by jacquesm on Tuesday June 07, 2016 @06:02PM (#11858322)
Conversion losses and cost / KWh are the problem nowadays, not the number of cycles, that's getting to the point where it is still a factor but not the factor.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by tirant on Wednesday June 08, 2016 @03:37AM (#11860646)
we have two options here: We either improve the power grid all around the world, so whenever it's dark in one side of the planet, the other side, sunny, feeds the darker part; or we start investing heavier on other renewable sources not depending on the sun, to provide the required energy for those nights and cold evenings in the the winter months.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by Teeboo on Wednesday June 08, 2016 @12:19AM (#11859986)
This is one of the most optimistic and best things I have read in weeks.

+1

Re:Electric vehicle battery costs rapidly declining, Tesla c... by niels_olson on Tuesday June 07, 2016 @05:08PM (#11857863)
> Health Care, for example, is one of those things where, if you're not thinking about supply, spending more money just makes everything more expensive.

If you haven't, I highly recommend Paul Starr's Social Transformation of American Medicine. The number of MD medical school seats in the US has remained at about 16k-17k for 100 years.

https://www.nytimes.com/books/98/12/06/specials/starr-medici...

Re:Electric vehicle battery costs rapidly declining, Tesla c... by tetraodonpuffer on Tuesday June 07, 2016 @06:43PM (#11858597)
do you think that if there were 10x as many doctors magically hospitals would charge you any less for your stay? or that pharmaceutical companies would charge you any less for their drugs?
Re:Electric vehicle battery costs rapidly declining, Tesla c... by aianus on Tuesday June 07, 2016 @07:33PM (#11858903)
> do you think that if there were 10x as many doctors magically hospitals would charge you any less for your stay?

Eventually, yes.

All those unemployed doctors are more likely to settle for working for a cheap hospital and earn 'only' ~$150k than switch careers or stay home on welfare. This would eventually decrease the cost of basic care.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by lern_too_spel on Tuesday June 07, 2016 @07:21PM (#11858835)
No, for the same reason that I don't think increasing the battery supply will reduce the cost of leather seats. I do, however, think that if there were 10x as many doctors, my checkups would cost less (in both time and money) and my medical procedures would cost less.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by geodel on Wednesday June 08, 2016 @10:17AM (#11862404)
I think fundamentally issue is how much expense is okay for healthcare. Current prevailing thought is whatever it takes.

With consolidation of hospitals and other healthcare facilities: less options coupled with desire that even the most expensive healthcare procedures must be available to all irrespective of individual affordability, we are going to have ever increasing healthcare costs.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by rahelzer on Tuesday June 07, 2016 @04:54PM (#11857732)
When stimulus is suggested in a Keynesian context, it is not to create new factories, etc. It is to provide demand to fully utilize the productive capacity which the economy already has, but which is not currently being used because of lack of demand.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by coredog64 on Tuesday June 07, 2016 @08:03PM (#11859049)
What if the spare capacity is for factory building factories (FactoryImplFactory for the Java programmers in the audience)?
Re:Electric vehicle battery costs rapidly declining, Tesla c... by audleman on Tuesday June 07, 2016 @09:13PM (#11859324)
Lol, you nut!
Re:Electric vehicle battery costs rapidly declining, Tesla c... by IkmoIkmo on Tuesday June 07, 2016 @04:55PM (#11857742)
Well Musk has often claimed that the cost of batteries doesn't magically go down due to big new innovations like we've seen in some other industries. Rather it's due to constant iterations, making small improvements, and economies of scale. Particularly that latter part is hugely important and hasn't been much of a factor yet in the specialised market that is car batteries. And that's why they're building a gigantic factory, because producing at scale can really do a lot to push the price of batteries down. But the notion that this is somehow unrelated to money is kind of silly, this is exactly the type of thing you could fix by throwing lots of money at it. The very reason they couldn't do it sooner because there was no cashflow to finance such a massive project.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by qaq on Tuesday June 07, 2016 @06:22PM (#11858466)
It's a function of both $ & time. You can't spend a trillion and build a Gigafactory in 1 day even though you are spending 200X the amount of money.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by SEJeff on Thursday June 09, 2016 @07:16AM (#11868637)
Bingo! This reminds me of the fallacy of the mythical man month which I often compare to pregnancy in women. With 9 women, you can't have a baby any faster. The gigafactory is monstrous (second largest building by square footage in the world I believe) and is doing some quite new things. This requires R&D and no matter how you skin it, that requires time, often in serial.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by jbooth on Tuesday June 07, 2016 @04:52PM (#11857712)
Fortune 500 are all sitting on record amounts cash right now, they apparently see no place to invest it profitably.

The thinking behind trying to pump up demand is that if people are buying more, the Fortune 500 will put that money to work selling things.

Traditional supply-side economics is basically "shove money into those companies however possible".. but they're already sitting on piles of cash and doing nothing with it. How does more of that help?

Re:Electric vehicle battery costs rapidly declining, Tesla c... by choward on Tuesday June 07, 2016 @06:00PM (#11858305)
> Fortune 500 are all sitting on record amounts cash right now

Are you trying to tell me that the money isn't trickling down to the underpaid employees working for those companies? LIES.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @04:30PM (#11857531)
Tesla consumes a small fraction of global lithium-ion battery production. When the overall market is much larger than the marginal consumption, the assumption that offering more money increases local supply holds perfectly well. Even if you assume that Tesla is demanding 5% of the battery market which would be an outside estimate that's still well within the region where paying more will get you more.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Tuesday June 07, 2016 @04:40PM (#11857621)
Worldwide production of lithium-ion batteries in 2013 was around 35GWh. The current rate is somewhat higher, I can't quite find how much.

Tesla is currently producing around 100,000 cars/year. Each car has about 80kWh of battery on average (the options right now are 75 or 90), so that's about 8GWh. If they meet their goal of 400,000 Model 3s produced in 2018, assuming 55kWh of battery for those cars, that's 22GWh, not counting what goes into continuing Model S and Model X production. I'm not sure it's as small a fraction of global production as you say.

One of the statistics they like to quote about their Gigafactory is that its final production will equal the total global production by the industry when construction started in 2013.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by ksec on Wednesday June 08, 2016 @12:05AM (#11859934)
I had to do some calculation on the numbers. Gigafactory promise roughly 150GWh when in goes full online. I was wonder how could a SINGLE electric car company consumes so much batteries? More then Phones?

It turns out even with 2Billion Phones at 5Wh, a conservative estimate, we are only at 10GWh. Billion Phones!, 10GWh!, 5 times more then the World Capacity in 2013 from 1 Factory!

All these numbers and scales are so mind bogglingly huge that i fail to comprehend.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Wednesday June 08, 2016 @09:52AM (#11862251)
It's pretty cool how much different the scale is with electric cars versus the sorts of batteries we're used to.

I frequently see people discussing range impacts based on a complete misunderstanding of the magnitudes involved. They'll ask about how much range you'd expect to lose from running a dashcam or charging a phone, or recommend turning off headlights to conserve energy.

And of course I can't blame them at all. We're used to battery-powered devices where things like screen brightness are critical to battery life.

But then you run the numbers, and realize that a fully-charged Tesla could run the headlights for over a month before draining the battery, or that it could charge an iPhone 20,000 times....

Re:Electric vehicle battery costs rapidly declining, Tesla c... by toomuchtodo on Tuesday June 07, 2016 @04:55PM (#11857734)
JB Straubel just mentioned at the annual Tesla shareholder meeting they're now expecting to produce 150GW of storage capacity a year at the Gigafactory, split between vehicles and energy storage based on demand for both.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mstachowiak on Tuesday June 07, 2016 @06:13PM (#11858403)
Just for clarification, Tesla's initial estimates for Gigafactory production was 35GW/year at the cell level and 50GW/year at the pack level (with some cells produced by other suppliers). At the shareholder meeting they speculated they could 3x those numbers with the current Gigafactory. This is at full production, which is years away.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by witty_username on Wednesday June 08, 2016 @02:32AM (#11860406)
GWh right?
Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @05:36PM (#11858104)
That analysis is sort of ridiculous. On the numerator you're using a number much higher than the number of cars Tesla has ever produced in a year. On the denominator you're using a years-old size of a rapidly growing market for batteries.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by shawn-furyan on Tuesday June 07, 2016 @06:09PM (#11858380)
How do you think that decisions are made under uncertainty? You can't always wait until you have very solid numbers to come up with an analysis. It's not "ridiculous" to come up with an order of magnitude estimate when better information is unavailable, it's a critical step in solving new problems.

A more productive criticism would have been to offer an improvement, rather than to just point to the imperfections in an attempt to estimate the future impact of a new technology.

edit: added second paragraph

Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @06:13PM (#11858402)
OK, but in 2016 we don't have to guess how many cars Tesla built in 2015. It's historical fact.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by shawn-furyan on Tuesday June 07, 2016 @06:22PM (#11858472)
What is it? You could actually improve the estimate rather than /just/ pointing out that it has flaws. And your original criticism was vague. At least this one moves things forward.

After a quick Google search, the number of vehicles Tesla sold in 2015 does in fact seem to be a bit uncertain. It seems they sold over 50,000 vehicles, but I've not found a more precise number, in a few minutes of looking.

Sales from previous years seem to be:

2012 - 2,650

2013 - 22,477

2014 - 31,655

2015- ~50,000

though I got these numbers from a quora post, so take them with an adequately large dose of salt.

edit: added google findings, tweaked wording to be more specific

Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @06:37PM (#11858548)
There is no reason to guess at these numbers OR to Google for other people's guesses. The sales figures to 5 significant digits are in Tesla's 10-K report. For example:

During 2015, we achieved significant efficiencies in Model S production and produced 14,037 vehicles in the fourth quarter of 2015. We began production of Model X in the third quarter of 2015. We plan to deliver 80,000 to 90,000 new Model S and Model X vehicles in 2016.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by shawn-furyan on Tuesday June 07, 2016 @06:47PM (#11858626)
So... we're about where we were at with the very first estimate...

Precision isn't particularly helpful for this sort of rough projection. Which highlights that your original criticism wasn't particularly productive.

clarification: In claiming that we're about where we started, I'm saying that a 10-20% correction doesn't significantly impact a rough order of magnitude estimation. The estimate was in the precision bounds of its stated goal. Therefore the estimate wasn't "ridiculous" at all, or at least, you haven't shown that it was.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @07:03PM (#11858720)
That's not why I thought it was ridiculous. I said it was ridiculous for using projected 2016 Tesla production and dividing that by actual 2013 battery production, when battery production is rapidly expanding. You either have to use 2016 projected battery production on the denominator, or actual 2013 Tesla production (a number very close to zero) on the numerator.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by shawn-furyan on Tuesday June 07, 2016 @07:13PM (#11858797)
You've been criticizing the rough order of magnitude estimate for an hour and still haven't offered a significant improvement. I find that more more ridiculous. If the improvement is so obvious that not including it is ridiculous, then why not just produce the improvement you're talking about?

Note: This is rough, back of the envelope projection meant to improve on a 5% figure that someone pulled out of the air.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @07:17PM (#11858816)
I think you're confused. _I_ am the one who said 5% and I think it's a reasonable working number. mikeash then replied, saying that Tesla will consume 22GWh (2018) and the battery market is only 35GWh/year (2013), implying that Tesla's share is so large it violates normal rules of market liquidity. Then I objected to that implication.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Tuesday June 07, 2016 @08:04PM (#11859053)
I don't think 5% is right. You seemed to think that 30% year-over-year growth in the industry was a reasonable estimate. If it was 35GWh/year in 2013 then that puts it at about 77GWh today and 130GWh in 2018. That puts Tesla at around 10% of total production now, and 23% in 2018.

I can't figure out which part of this you object to. You seem to accept all the numbers, but continue to argue about the shape of the box they're presented in.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @08:53PM (#11859244)
I'll spot you 10%, but I think that's still within the realm of linear market behavior. I really don't agree with the original idea (now far upthread) that it required a visionary to lay the path for making all of Tesla's batteries. There are numerous firms around the world totally dedicated to market forecasts for major industries like batteries, car parts, and raw materials.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Wednesday June 08, 2016 @09:28AM (#11862106)
That's fine, I just objected to the "small fraction" bit, not the rest.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by shawn-furyan on Tuesday June 07, 2016 @07:45PM (#11858966)
> I think you're confused.

How delightfully condescending of you. Yes, I didn't realize that the 5% number came from you, that hardly makes me "confused". Taking that into light, it's not obvious to me how a very rough back of the envelop projection is significantly more ridiculous than a number pulled out of thin air. My whole problem is that you called it ridiculous when it was clearly meant to be a rough order of magnitude projection. You can't really criticize a number pulled out of the air, because it goes without any attempt at justification. But a back of the envelop calculation can be improved in a piece-wise fashion to hone in on a better result. So any attempt to model a phenomenon (as long as it doesn't come with unjustified claims of precision and certainty) is an improvement over a number pulled out of the air. But that process is short circuited when people just dismiss the projection out of hand as you did. This is why I appealed for an improvement in my first comment. It's really easy to shit on someone else's effort, but it is completely unproductive. If you see a problem, then fix it. Then you're adding to the conversation, rather than just shitting on a little bit of effort someone put out there.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by fouc on Tuesday June 07, 2016 @08:35PM (#11859190)
I wouldn't have taken the "I think you're confused" to be condescending. I mean I wouldn't interpret it as condescending and I don't think it was meant in that way.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Tuesday June 07, 2016 @05:44PM (#11858171)
How much do you think the industry has grown since 2013? How much do you think it will grow by 2018? Even if each one is a doubling, Tesla's part is pretty significant.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by honkhonkpants on Tuesday June 07, 2016 @05:58PM (#11858298)
It's tough to get hard data but a 20-30% CAGR from 2013 to the present time seems like a reasonable guess.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Tuesday June 07, 2016 @06:01PM (#11858314)
Sounds reasonable to me as well. I won't claim to have great numbers, just trying to compare the rough magnitudes.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by walrus01 on Tuesday June 07, 2016 @05:37PM (#11858114)
> Worldwide production of lithium-ion batteries in 2013 was around 35GWh

I don't think measuring it in terms of GWh is the best way to go about it, because a huge number of lithium ion batteries manufactured are NOT the type Tesla needs to use. Their battery packs are composed of 18650 size cylindrical cells.

Vast amounts of LiIon batteries manufactured today are pouch/flat type cells for laptops, tablets, mobile phones and other portable consumer electronics.

I would be very curious to see a number of the total estimated quantity of high-capacity 18650 cells manufactured worldwide in one year vs. the number of 18650 cells consumed by Tesla.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by narrator on Tuesday June 07, 2016 @05:52PM (#11858240)
This ties neatly into another common economic fallacy: That capital is homogenous. Highly productive capital equipment is specialized, and requires long lead times for its production. It cannot quickly be repurposed for other uses. Thus, it's important that demand is genuine and not the result of "stimulus" that will waste a lot of capital equipment when stimulus is withdrawn.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by Brakenshire on Tuesday June 07, 2016 @06:46PM (#11858621)
That's why you use stimulus to fill in short periods of slack up to the baseline economic capacity, but not on top. In other words, why you apply stimulus counter-cyclically. It's a good point about stimulus spending within a particular part of the economy, though.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by melling on Tuesday June 07, 2016 @05:24PM (#11858006)
Tesla hasn't sold 100,000 cars in their entire history. Last year they did sell 50,000 cars. Think they'll double that this year?

http://www.fool.com/investing/general/2015/11/18/how-many-ve...

Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Tuesday June 07, 2016 @05:42PM (#11858158)
They've sold well over 100,000 cars. The current total is around 140,000. They project 80,000 or 90,000 this year, with a slow start, so I think their current rate is 100,000 if not higher.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by simonh on Wednesday June 08, 2016 @05:39AM (#11861070)
Do their sales in the first 5 months of 2016 somehow not count?
Re:Electric vehicle battery costs rapidly declining, Tesla c... by melling on Wednesday June 08, 2016 @06:58AM (#11861351)
I was looking at the wrong data. At any rate, the point is that Tesla is trying to ramp up production very fast. Going from 50,000 to 100,000 cars sounds difficult in 12 months, while maintaining quality.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by mikeash on Wednesday June 08, 2016 @11:35AM (#11862922)
Going from 2,700 to 22,000 in 12 months sounds difficult too, as does going from 22,000 to 32,000 and from 32,000 to 50,000.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by misnome on Wednesday June 08, 2016 @09:11AM (#11862007)
Unless they have spent the past couple of years planning and preparing to up their capacity..
Re:Electric vehicle battery costs rapidly declining, Tesla c... by jeromeflipo on Tuesday June 07, 2016 @04:54PM (#11857729)
How small a fraction? Tesla is expected to produce between 80,000 and 90,000 Model S and X this year. With 80 Kwh battery pack on average (my guess), Tesla currently consumes 6.4 Gwh of Lithium-ion battery.

Back in 2013, the global production was estimated to be 35 Gwh (cf. Gigafactory announcement presentation).

How much has it grown in the past 3 years?

Re:Electric vehicle battery costs rapidly declining, Tesla c... by Someone on Tuesday June 07, 2016 @05:21PM (#11857968)
Eyeballing the chart in the article, and assuming kWh/car to have remained constant: by a factor of about 6.

The article also mentions 70% growth in the last year. Assuming equal growth in the other years, It would be about a factor of 5.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by outworlder on Tuesday June 07, 2016 @05:50PM (#11858225)
> I find it amusing to see so many people questioning why Tesla didn't release a cheap Tesla sooner. The answer is: They don't have the batteries to do that. That's why they are building the GigaFactory.

Interestingly (for me), when I leased my leaf the sales guy was talking about how Nissan could make a car with a much better range, but chose not to. It was amusing hearing it from a (otherwise backwards) dealership.

It makes sense, of course. What I keep wondering is, if energy density (not just cost) increases significantly in the future, couldn't existing electric vehicles be retrofitted with "aftermarket" cells? Currently, resale value is pretty low, mostly due to battery concerns (both longevity - which I think is unfounded - and hopes of better tech). But, with otherwise so low maintenance costs, I figure these cars could have a pretty long life.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by audleman on Tuesday June 07, 2016 @09:17PM (#11859333)
> Interestingly (for me), when I leased my leaf the sales guy was talking about how Nissan could make a car with a much better range, but chose not to

Wait, what? How did he justify that? That sounds like saying Apple could easily make a laptop with much better battery life but chose not to. Why would they ever do that?

Re:Electric vehicle battery costs rapidly declining, Tesla c... by josephg on Tuesday June 07, 2016 @09:30PM (#11859381)
Apple could easily make a laptop with better battery - it would just be bigger, heavier and more expensive.

Elon Musk claims the same thing about Tesla - that he could easily increase the range on Tesla's cars if they wanted to: https://www.youtube.com/watch?v=wsixsRI-Sz4 . But with a range of ~300 miles he thinks they're fine.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by Caprinicus on Tuesday June 07, 2016 @10:31PM (#11859600)
It's like when apple got to 7+ hours with battery life, their laptops started getting drastically smaller instead of continuing to have longer lasting batteries. I'd like to have a 400 mile tesla, but I'd like to have a tesla that doesn't weigh 40 tons first.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by _ph_ on Wednesday June 08, 2016 @03:32PM (#11864925)
The current MacBook pro has with about 100Wh the largest battery you are allowed to carry onto airplanes - any larger battery would prohibit it traveling by air. So there is a very good reason not to make the battery any larger.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by rz2k on Tuesday June 07, 2016 @09:37PM (#11859417)
For the sake of argument, Lenovo, Dell, Asus, HP, Samsung, Sony, and Toshiba are among the manufacturers that have managed to release a ~13" laptops with Skylake processors, and Apple still may not next week. They also haven't made any meaningful updates to the workstation Mac Pro since 2013.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by gambiting on Wednesday June 08, 2016 @04:51AM (#11860895)
I guess he meant that Nissan could just put more battery cells in the car, at the expense of space. Fill the boot with batteries, that kind of thing.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by Brakenshire on Tuesday June 07, 2016 @06:50PM (#11858642)
They do have schemes where you buy the car but lease the battery, you'd hope the cost reductions in manufacturing the batteries, and maintaining the battery fleet, would lead to reduced costs for the consumer. Might be a forlorn hope, though.

But I agree, if I was buying an electric car, a standardized battery would be a huge draw.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by jernfrost on Wednesday June 08, 2016 @05:48AM (#11861103)
Building the cheap mass market EV was what we tried in Norway. An utter failure. What it meant was a boring, underpowered car at a high price. Exactly the ugly little cars which EVs where known as. Elon Musk understood you had to start at the high end with low volume and high margin to fund your way to the mass market car.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by vintermann on Wednesday June 08, 2016 @06:39AM (#11861281)
Ah, the Th!nk. Well well, someone had to learn the hard lessons, so others can learn from them.

Although, learn? It's easy to look at things in retrospect and say this billionaire was correct - but one might be committing the Texas sharpshooter error then. Vinod Khosla bet heavily on bioethanol over electric cars.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by Gravityloss on Wednesday June 08, 2016 @01:20PM (#11863853)
I think a car that is worse than average is a significantly different thing than a car that is average.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by skybrian on Tuesday June 07, 2016 @04:38PM (#11857600)
That's proving too much. It's true that factories don't build themselves automatically. But they do require funding. Unless someone predicts demand for a product, they won't write the check, and the people who actually do the work don't get hired.

Better to say that demand is necessary but not always sufficient. Proven demand is a great motivator, but the manufacturers may require a lot of lead time if it's unexpected.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by narrator on Tuesday June 07, 2016 @07:30PM (#11858880)
Business is about risk though. The entrepreneur envisions a demand for a product and then builds the capacity to fulfill that demand. If the investment in production capacity were risk free there would be much more capital available for that endeavor. Who would make the investment risk free though? The government? Or in the case of our recent housing bubble catalyzed by the brave new financial world, some thinly capitalized derivatives underwriter?

China has much more intervention in their economy to do this sort of thing, with the banks acting as partially privatized central planning. The role of government in economic planning is certainly an area for policy wonks to carefully consider. In a democracy there's a bit too much incentive for the public to, as Marx noted, vote themselves money from the public treasury.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by alex_hirner on Tuesday June 07, 2016 @04:40PM (#11857620)
> fallacy is that any amount of money can fix anything.

That's exactly why I started http://openbatt.org The problem exists partly because incremental knowledge gains, such as additive formulas, are hard to trade.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by disposeofnick9 on Tuesday June 07, 2016 @05:32PM (#11858066)
Chinese cells are like illicit drugs: quality varies widely and it's hard to know what someone is getting. I bought 4 laptop batteries from Amazon and all had overstated capacities of the 18650 chemistries... some had 2000 mAh (10% overstated), others 1800 (22% overstated) , when the 4s3p packs were marked "8800 mAh." I tested the cells individually, and they came out to about 85-99% of spec. The problem is also in the manufacturing because I have zero confidence in these cells not development crystals under anything more than 0.2C dis/charge and lower temperatures.

I think we need an independent UL/CE for evaluating and lifecycle testing and certifying cells are less likely to short out or die prematurely by digging deep into how a battery is made against its specifications, conducting MTTF tests and many other tests and approaches for holistic grading and improvements. Otherwise, fake and shoddy cells will continue to flood the market with phony and dangerous goods. It can't be leveraged as a bureaucratic industry or incumbent protectionism, but to keep standards high as are for all other wall-powered devices. This will knock players whom can't or won't make good products out of the supply-chain, but they deserve it.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by alex_hirner on Wednesday June 08, 2016 @04:15PM (#11865293)
There is significant effort (and progress) in standardizing and contrasting test methods [1]. This usually constitues a good first step in a market of lemons. [1] http://energy.gov/sites/prod/files/2014/09/f18/es_cunningham...
Re:Electric vehicle battery costs rapidly declining, Tesla c... by DougN7 on Tuesday June 07, 2016 @05:46PM (#11858192)
Yes, exactly this. And it applies in many things, such as guaranteed basic income (what would that do to the money supply, to the labor supply, etc). Too many times we think of specific scenarios but those are misleading unless you take the big picture and all its moving pieces into account.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by zanny on Tuesday June 07, 2016 @05:49PM (#11858216)
To claim that we do not have the industrial supply to meet a basic income of the poverty level (at least in the US) is to also say we do not have the housing or food to sustain ~300 million people above the poverty level.

For the nation that is supposed to be the foremost in the world, and has been supposed to be for a century and a half, if that is true, all our talk of technological innovation and futurism is for naught, because we cannot even house and clothe everyone in our collectively agreed upon minimum possible conditions.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by DougN7 on Tuesday June 07, 2016 @07:36PM (#11858915)
Housing, feeding and clothing everyone is one thing. Doing so while telling all of those people that they also do not need to work is quite different. Having just 10% of the current workforce drop out would have huge repercussions. The GDP drop might make it so we can no longer afford it. Or as I've said before, everyone having more money with no increase in goods and services will create serious inflation.

My point is systemic changes have to be looked at as a whole system. An economy and 300 million lives is very complex.

Re:Electric vehicle battery costs rapidly declining, Tesla c... by jokoon on Tuesday June 07, 2016 @07:18PM (#11858823)
Won't the next problem be the geopolitics of lithium?

I guess what drives the price of batteries is the fabrication process?

Re:Electric vehicle battery costs rapidly declining, Tesla c... by Gibbon1 on Tuesday June 07, 2016 @09:02PM (#11859288)
I'll throw my $0.02 in here, I think the issue with lithium is price spikes due to production capacity not keeping up with demand.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by frozenport on Tuesday June 07, 2016 @05:56PM (#11858277)
Well, if they had more money they could build two gigafactories. So money can definitely help them scale up.
Re:Electric vehicle battery costs rapidly declining, Tesla c... by roninb on Tuesday June 07, 2016 @04:33PM (#11857561)
> We could use more supply side thinking about very large problems that the economy faces

What do you mean by this? I was under the impression that "supply side economics" meant throwing money at your problem to solve it (and removing regulation). That sounds like it's exactly what you're arguing against.