Reducing the cost of batteries is the biggest problem facing electric vehicles for mass popularity and selling prices close to fuel cars or even lower. Always known as a cost killer Elon Musk understands this, Tesla from weak to invincible process is Musk's pursuit of the ultimate cost. In accordance with Musk's statement on Battery Day this year, Tesla is committed to reducing the cost of the entire battery value chain, including cell design, cell manufacturing, anode materials, cathode materials, and cell integration, from first principles, and ultimately to reduce the cost of the battery pack by 56% to $60/kWh in 2023.

Then according to this inverse, the current cost of Tesla's car battery pack is about $136/kWh, and the industry consensus is that the selling price of electric cars to be on par with fuel cars, then the price of the battery pack should be less than $100/kWh. Now look, Tesla according to this there is still a distance. However, just as Tesla is still painting a big picture for the public, the industry already has lithium-ion battery pack prices that have come to the historic $100/kWh mark.

100 USD/kWh is close at hand
On Dec. 16. 2020, Bloomberg NEF (BNEF) reported that the price of lithium-ion battery packs had its first historic moment this year below $100/kWh. The price was set by electric buses from China, and BNEF highlighted that while this is the lowest reported price, the actual weighted average price for electric buses in China is slightly higher, at $105/kWh. If battery packs and cells are counted separately, then the pack price is $126/kWh and the average cell price is $100/kWh. This indicates that the PACK component accounts for 21% of the total price.