Great announcement with strong hints at what is to follow. The direction seems to have shifted somewhat from hydrogen to high grade graphite and we will be able to make it for a fraction of what it costs the competition.
Tesla is currently sourcing enough high grade graphite to produce about 400k electric vehicles per year and they are planning to produce about the same volume of powerwall batteries. This will create demand for 40-50 thousand tonnes of spherical graphite per year which would increase the world demand by circa 50 percent. With the current price of battery grade graphite coming in at above $5k/tonnes this represents an increase of $200m plus.
“The main determinants on the cost of the cell are the price of the nickel in the form that we need it… and the cost of the synthetic graphite with silicon oxide coating,” explained Musk.
"While the country is increasing its spherical graphite capacity, there is a fear that there will not be enough quality product available for internal Chinese needs together with other emerging customers such as Tesla"
http://benchmarkminerals.com/Blog/e...n-batteries-should-be-called-nickel-graphite/
Elon has to date preferred to source graphite from sources that offered supply chain advantages and minimize greenhouse gas emissions.
Hazer basically set the course for battery grade graphite market domination today IMO
Imagine how the presentation would go:
1. Hazer graphite can be produced for a fraction of the cost
2. The graphite plant can be built on site to maximize supply chain advantage
3. Hazer graphite has the smallest carbon footprint of any production method.
4. How many would you like?
(20min delay)