ENERGY STORAGE BUSINESS COULD EARN $22.8 BILLION FOR LUCID MOTORS BY 2030
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In 2020, more than 260 gigawatts of renewable energy capacity were added globally. According to the International Renewable Energy Agency, the United States was one of the biggest markets adding 29 gigawatts of capacity. By the end of the decade, the Joe Biden administration wants 80% of the United States energy to come from clean sources. This presents a unique opportunity to the Lucid Group and anyone else in the industry.
What is an ESS? (Energy Storage System)
An ESS simply put is a battery. There are other elements apart of an ESS like combiner boxes, inverters, etc. Still, it's basically a massive battery that can hold energy (usually from reusable sources) for later use, for the sake of simplicity.
The Lucid Group Energy Storage Business
Like Tesla, Lucid Group is eyeing Energy Storage Systems (ESS) for commercial, utility-scale markets, and home use. The Lucid Group has a pilot program where they are testing their battery storage capabilities. Right now they are testing their ESS with a small solar farm that is on The Lucid Group HQ. If the Lucid Group can get past their ESS pilot program and start producing in mass, their energy division could bring in a whopping $22.8 billion...well maybe
From an interview attained by Yahoo Money, here's what Peter Rawlinson said about their ESS program
"Right now, it's probably, in terms of effort...one-half of 1% of our endeavor. But I wouldn't be surprised if in five years from now it was bigger than our automotive business. I wouldn't be surprised if ESS [Energy Storage Systems] didn't generate more revenue than our cars."
In 2026 The Lucid Group projects that they can bring in $22.8 Billion from EV sales. So going by Peter's quote, "But I wouldn't be surprised if in five years from now it was bigger than our automotive business." that means revenue from the ESS division would have to be more than $22.8 Billion because that is the companies project revenue for their automotive business.
Is This Achievable?
In comparison, in 2020, Tesla brought in a whopping $2 Billion from their ESS division. It is possible that The Lucid Group could bring in that type of money from their ESS division, but not in 5 years. Although more companies aim to be 100% renewable at all times, like Google leading the way. But still, even with massive initiatives and Joe Biden's plans to get to 805 percent renewable energy by 2030
So to answer the question honestly, we don't think it's possible in that timeline. But energy storage systems are here to stay.
This article is by Daily Lucid. Daily Lucid is The #1 source for Lucid Motors news, rumors, and reviews.