Elon Musk did not disappoint his followers with the novelties he presented last night at Tesla Battery Day . The president and co-founder of the company generated a great impact with two announcements that will mark the future of the industry: the manufacture of its own batteries and the reduction of the value of electric vehicles .

At the beginning of the event, which brought together investors and fans of the company, Musk recalled that the battery is the main cost in the value of an electric vehicle. For this reason, Tesla will manufacture its own batteries to cut its prices by half , which will also reduce the final amount of electric and autonomous vehicles by 2023. “In three years we will be able to manufacture a car at $ 25,000 that will be equivalent to a gasoline one. Well, it’ll be better, “Musk joked.

The president of the company, founded in 2003, recalled that Tesla was born with the ambition to democratize the sale of electric vehicles and make them cheaper for the mass market. 20 years later, Musk could get the long-awaited car for $ 25,000 , below the initial goal of $ 30,000.

The Tesla Battery Day had more than 260,000 online viewers and 240 shareholders who, sitting inside the Tesla Model 3 located in the company’s parking lot, honked their car horns in approval with each of the announcements. by Musk.

What will the new batteries be like?

The key to reducing the final price of the electric car is to lower the cost of battery production. In this sense, Tesla announced that it will manufacture a battery of one million miles (1.66 million kilometers) with a guaranteed durability of 10 years. And that in addition, it will drastically reduce the cost of the price of the kilowatt per hour, at least up to 50 dollars per kWh.

This will be achieved with next-generation batteries that it will assemble in its workshops and whose suppliers will continue to be Panasonic, LG Chem and CATL . What Tesla will do to achieve its goal will be to redesign the battery cells so that they are more voluminous (8 centimeters by 4.6 centimeters) but that they develop five times more energy and offer 16% more autonomy.

“Today’s batteries cannot scale fast enough. They are too small. For electric cars to continue their growth versus their gasoline-powered counterparts, they will need to remain cheaper, ” Musk said.

Silicon will replace cobalt

On the other hand, the key in reducing the price of the battery is to eliminate cobalt from the chemical process and replace it with silicon . For this reason, Tesla acquired a 4,000-hectare lithium mining site in Nevada that will be used to produce battery components. “There is enough lithium to electrify the entire car fleet in America,” Musk said.

And to put batteries in electric vehicles, Tesla built a new mass casting machine to integrate battery components inside the car, much like an airplane’s fuel tanks are built into the wing, rather than separate parts. . “This will reduce the overall mass and number of parts, while improving the structural integrity of the car,” Musk said.

Although the announcements made by Musk generated great anticipation among investors and followers of the brand, Tesla shares suffered an inexplicable 4% drop in stock trading.