The world will one day choose to use clean energy, instead of just wanting it.
According to Tesla Motors Inc. CTO JB Straubel, the increased number of clean energy storage options would pave the way for this transition.
People choose oil because it imposes the lesser financial cost. Although when compared to batteries the latter would still be more expensive, Straubel believes that there would be lesser financial restraints in 10 years.
Lithium-ion battery costs have experienced a substantial decrease compared to where we were a decade ago. Once the trend reaches a rate lower than the price of gasoline, our energy dynamics would change drastically. In fact, the transition of other industries (i.e. the use of solar panels and batteries for home and commercial purposes) would help society adopt the alternative sources of energy a lot easier.
The solution to the problem lies in the dynamics of supply and demand. Once there is a bigger supply of lithium-ion batteries and therefore comes at a lesser cost, the demand for electric vehicles would increase as well.
Tesla leads this transition by being one of the world’s largest purchasers of lithium-ion batteries. The company alone consumes three to four gigawatt hours (GWh) worth of batteries every year. This could even increase to 35 GWh by 2025.