The magic number that unlocks the electric-car revolution

At Tesla’s Battery Day event, Elon Musk could announce that the California-based company now makes batteries that cost less than US$100 (RM414) per kWh. Even if he doesn’t, the goal is within reach. — Emmanuel Dunand/AFP

A decade ago, some of the smartest minds at the US Department of Energy set an ambitious goal: lower the cost of battery packs to US$100 (RM414) per kilowatt-hour from more than US$1000 (RM4,135) per kWh. If achieved, electric cars would reach cost parity with internal-combustion engine cars – unleashing a revolution.

That moment is here. Later today, at Tesla’s Battery Day event, Elon Musk could announce that the California-based company now makes batteries that cost less than US$100 per kWh. Even if he doesn’t, the goal is within reach. In March, General Motors, partnering with South Korean battery maker LG Chem, set a goal of reaching US$100 per kWh soon. Volkswagen has hinted that its newest electric car, the ID.3, uses batteries that cost less than US$100 per kWh.