In May 2019, Tesla purchased Maxwell Technologies for $218 million. This appeared to be driven by Maxwell’s dry battery electrode technology, which improves production efficiency by a factor of 16 and lowers manufacturing costs by up to 20% – both key factors when taking EVs to a mass market. Maxwell’s technology has also been shown to improve battery performance, boasting a current battery density of 300kWh/kg and a roadmap to 500kWh/kg. So the acquisition of Maxwell would mean Tesla could produce cheaper batteries more quickly, and potentially with greater range in the future.
Half a year after the Maxwell acquisition, rumors began to circulate about a Roadrunner Project aimed at reducing the cost of battery production. Tesla has also purchased Hibar, which builds equipment for the production of batteries. In other words, Tesla is gearing up to produce its own batteries in great quantity, with reduced costs alongside greater density and improved density, again paving the way for more affordable EVs.
GXY Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
