Battery Prices Falling Through the Floor
If you’re wondering what will push battery prices down to previously unforeseeable levels, look no further.
Up until recently, sushi has had far better storage technology than electricity, but that’s clearly no longer the case. As described in the article linked above, three huge battery plants are going live this very week, Tesla’s among them.
While it not safe to “bet against Elon Musk,” I have wondered at the “Giga-factory.” It seems as if building such a factory hopes to capture economies of scale (and vertical integration) to drive down prices of batteries. Usually however you would not attempt this move until the technology is reasonably settled and stable. Such a large factory may tend to suppress innovation. Any new start up technology must now not only beat the price of the existing technology but in addition the economies of scale. (or else have very deep pockets to sustain unprofitability.)
It is understandable that AES has the different approach of attempting to get the cheapest components from around the world. Other companies are also planning on huge battery factories, http://www.visualcapitalist.com/the-lithium-ion-megafactories-are-coming-chart/ and are possible suppliers.
But either way does this mean less innovation?