Elon Musk talks about Tesla's aggressive growth strategy
Tesla’s aggressive growth strategy: Musk says ‘a few million cars’ will roll of the production line by 2025, while the highly anticipate Model 3 will be ready by 2017.
Elon Musk has once again spoken of ambitious plans for Tesla, this time stating that by 2025 as many as ‘a few million cars’ will be rolling off its production lines each year.
Speaking at the Automotive News World Congress in Detroit, which coincided with the North American International Auto Show, the Tesla CEO said he was confident that the company would be selling at least half a million cars by 2020.
During the same talk, he also said he was ‘absolutely certain’ that Tesla will be able to reduce the cost of manufacturing batteries by 30 percent. Furthermore, by 2025 Musk predicted that Tesla would be selling a minimum of two million electric vehicles per annum.
Compare this grand figure with the 30,000 electric Tesla’s sold in 2014 and it’s clear that Musk has an aggressive game plan.
“At half a million cars a year, we should be profitable,” Musk said, although he acknowledged that he had been “too optimistic” in the past regarding manufacturing timelines.
The manufacturing maven also announced that the highly anticipated, low-cost Model 3 electric sedan - that many believe will be the make-or-break vehicle for Tesla - would be available by 2017.
Musk did however admit that Tesla might not have the means to fill the demand for such a high-volume vehicle at that time, meaning investors will have to wait at least five more years until Tesla, whose stocks rose nearly 48 percent in 2014, becomes profitable.
Musk also explained that Tesla would be making money now if it were not investing in an aggressive growth strategy that involves new technology and vehicles. Currently, Tesla is investing more than $2 billion in building a massive battery factory in Nevada in partnership with Panasonic.
The announcement could dash investors' hopes to start seeing returns on their investments by 2017, when the Model 3 makes it to market at a starting price of $35,000.
Tesla made total revenue of $2.24 billion in the first three quarters of 2014, up 60 percent from the previous year. It posted a net loss of $186.4 million from 2013's $57.7 million.
Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.