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According to a March 2021 Cairn Energy Research Advisors report Tesla pays an average of $142 per kWh for battery cells versus $169 per kWh for GM and an industry average of $186 per kWh. Battery packs are the biggest expense in manufacturing electric vehicles.

I don't know what the cost of the Ultium batteries is today, but GM said Thursday that it plans to reduce its Ultium cell costs to $87/kWh in 2025 and below $70/kWh by later in the decade.

Part of that cost reduction will undoubtedly come from the scale of 4 mega battery plant, some from improved chemistry, and some from manufacturing improvements.

General Motors expects its new electric vehicle profits to be in-line with cars and trucks with traditional engines by 2025 – years ahead of schedule and what many thought was possible.

GM CEO Mary Barra on Thursday said the updated forecast factors in federal incentives under the Biden administration’s Inflation Reduction Act, which includes money back for companies that produce EVs in North America as well as for consumers and fleet customers that purchase the vehicles.

I'm sure Tesla will be working on reducing costs as well.

GM expects EV profits to be comparable to gas vehicles by 2025, years ahead of schedule
Tesla's lead in batteries will last through decade while GM closes in
 

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I wonder how much of that drop will be from mining companies completing their ramp up for lithium mining.
 

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I wonder how much of that drop will be from mining companies completing their ramp up for lithium mining.
Good point, obermd. Or new contracts starting? GM's said before that the Gen 1 Ultiums are less expensive than the Bolts and the Gen 2's will be less than Gen 1. Thats what these numbers are referring to I think.
 
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They all talk about cost of the batteries to the manufacturer. But it just makes more profit for them. It won't affect the price of new products.

A new EV car will cost the same as a new ICE car. But lower costs will bring more EVs on the road, which is good too.
 

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They all talk about cost of the batteries to the manufacturer. But it just makes more profit for them. It won't affect the price of new products.

A new EV car will cost the same as a new ICE car. But lower costs will bring more EVs on the road, which is good too.
Yup, the goal is to have EV's at the same price as ICE's with both being profitable. Lower battery cost plus fewer ICE-related components should make that price parity a reality.. by 2025 it seems. I'm not circling a calendar date though. :)
 
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