Part 7/15:
Battery energy storage remains a cornerstone of Tesla's strategy. Chinese manufacturers are leading the way, with energy storage system prices falling below $100 per kilowatt-hour—primarily driven by declining lithium prices and increased capacity utilization. This is significant because outside China, costs are still more than twice that, but the trend indicates rapid price declines.
Tesla's demand for energy storage systems, especially Mega Packs, is surging in China, and the company is yet to establish local manufacturing capacity there. Market forecasts suggest that falling costs will propel increased adoption of energy storage solutions across global markets, offering enormous growth potential.