Most of us believe that technology is going to help produce a better world and hopefully for us large profits along the way. When we think about technology we often think of changes that happen, and it will benefit us. As long as most of us benefit, we think that is great. However, sometimes new technology creates disruption for others.

In an article by Keith Bradsher of the New York Times News Service, CATL the world’s largest supplier of batteries for electric cars said it had made breakthroughs that will allow it to produce batteries cheaper, lighter, faster to recharge, more resistance to cold and greater driving range.

Most of the changes are a couple years away from being widely available in new cars which would make them competitive in price and performance as gasoline-powered models.

CATL produces 1/3 of the world’s electric car batteries and supplies 16 carmakers including GM and Tesla. Its main rival are BYD which makes 1/6th of the world’s EV batteries which is used by BYD, Korean and Japanese battery makers.

CATL noted batteries typically represent 1/3 of the cost of EVs.

CATL is using technology to make sodium-ion batteries which keep their charge in colder weather. If you examine a map of China, the northern part gets cold. The good news for the US is the world’s largest deposit of soda ash is in southwestern Wyoming.

Linking to dividend paying stocks, for a number of years, gasoline powered vehicles had clear advantages over EVs particularly in long distance driving. As the cost falls and the ability to drive further, the relative advantage of gasoline power falls or becomes closer to even, if that happens what will an average driver in the US do? Buy EV or buy gasoline power? You will have to decide. How will the big 3 adapt?

There are more questions than answers, till the next time – to raising questions.