Stating what those of us in the industry already see, and know, but it's a significant factor that investment led publications like Motley Fool see and report the bigger picture. We all know that technology is in many ways the easy part of the equation. But momentum is achieved by the cycle of price reduction, scale of production and of course the key to it all, investment/finance. When the market and business models are there, so is the investment, and the tipping point is reached. We are now past that tipping point, just, and a clean energy future beckons. Oh, did I mention talent was a key requisite too!? It is.
The auto industry is just the first, and most visible, domino in a number of industries that will be upended by falling battery prices. A report by Bloomberg New Energy Finance and McKinsey & Co., cited by Bloomberg, found that the average battery-pack price fell 65% from $1,000 per kWh in 2010 to $350 per kWh last year. It even came out last year that General Motors (NYSE:GM) is paying LG Chem (NASDAQOTH:LGCLF) just $145 per kWh for battery cells to make packs for the upcoming Chevy Bolt. The massive decline in battery costs is already gaining battery-electric vehicles a share of the overall new-vehicle market. But don't underestimate the adjacent industries that will open up as innovators learn how energy storage creates new opportunities.