Re: Investment Needed
The Gigafactory is a great move that can drop the price of a lithium ion battery pack by 30% using economies of scale. However, it is based on the bet that a similar technology that caters to similar applications (devices, cars, homes and the electric grid) will not be developed within the next few years. If a technology is developed, the Gigafactory will lose +30% of the value of its assets.
The only other technology that seems to be able to compete with lithium ion is the liquid metal battery from Ambri. The battery operates at extremely high temperate, causing it to require a minimum level of size and capacity (for example, the size of a 24 foot container). It makes the battery practical only for the grid and large setups.
Nevertheless, if the liquid metal battery is successful in grid environments then, it would cause the Gigafactory to lose the grid market and only sell its batteries for vehicle, home and device applications -- at an even lower price.