Global EV battery oversupply could help Slate get better batteries deal

[catiare]

This should help Slate get a better deal for the batteries. Even offering just one pack (the 240-mile version) for the lowest price tier. One can dream.

 

[ScooterAsheville]

They've announced they're looking for a new supplier. The ironic thing is that all that battery capacity is being sucked up for utility scale batteries. One person's loss is another person's gain.

 

[Letas]

Unlikely it will move the needle much- these mfgs are going to shift their product to secondary storage units.

 

[jesse boyd]

They've announced they're looking for a new supplier. The ironic thing is that all that battery capacity is being sucked up for utility scale batteries. One person's loss is another person's gain.

Utility scale is LFP, not NMC. It’s the NMC capacity that’s in excess and should see declining prices. Good for Slate prices, doesn’t matter for utilities.

 

[jesse boyd]

Unlikely it will move the needle much- these mfgs are going to shift their product to secondary storage units.

These aren’t LFPs. NMC is mostly an EV play. Should see some good price declines.

 

[sodamo]

Perhaps a change of thought, 240m battery = Standard, 150m battery = economy option.

but then I might have to reevaluate.

 

[AZFox]

It makes sense for this to happen because car manufacturers are collectively scaling back EV production plans.

This is supposedly due to "weaker-than-expected consumer demand", but that's probably because the average price of a EV is currently higher than the average price of a new ICEV in our market.

Slate Auto's idea to build a minimalist EV is ahead of its time, especially because their first model is a small pickup and there's unmet demand for those.

If cells cost less that allows Slate to price the truck more competitively and still be profitable.

 

[KevinRS]

Cost of EVs vs gasoline vehicles has to at least account for fuel costs. It's often going to cost around half to charge an EV compared to gas. Having solar is even better. In the past 10 years I've spent $12k on gas. Even if I'm getting the power "free" from the solar I already have, the problem with most EVs is they cost more than 12k more than low cost gas vehicles. In large part because with the tax credit, manufacturers have been targeting people with over $7500 in tax liability each year, because only those could even get the full credit. So it's mostly higher end vehicles, and lots of bells and whistles added.
Notice Ford didn't start with an EV Maverick, which would still be at least mid sized by past standards, but went to an EV F150, Tesla started with more expensive sedans, and keeps kind of promising a low cost vehicle, but the targets keep changing or getting cancelled.
Lower cost EVs seemed to be pushed hard as short closed end leases, so the dealership could take the credit, and the payments seemed good, but a 3k or more down payment spread over only 2 years is an extra 125 or more a month.
Loss of the credit probably will mean some sales lost overall, but the immediate drop in sales right now is probably mostly due to everyone rushing to buy before the credit ended. The market is changed, and lower cost EVs should end up being a bigger part of the market share without a credit.
Whether the current battery market will benefit slate enough that they can reduce price or increase capacity is going to depend on what specific deal they manage to make on what specific batteries, so it's completely up in the air what happens.