The most expensive part of an electric car is the battery. The giant slab of expensive and difficult-to-obtain elements powering the motors is what makes an EV more expensive than its gasoline equivalent.

But it looks like Tesla and battery partner Contemporary Amperex Technology Ltd (CATL) of China may have figured out how to make an electric car cost the same as a gas car.

Reuters reports that Tesla and CATL have been working on and will announce a new low-cost battery. This battery is expected to be officially unveiled at Tesla’s Battery Day event, which CEO Elon Musk has announced will happen at the end of May in either California or Texas. The new batteries are supposed to last for one million miles and make it possible for Tesla to sell cars at the same cost as gasoline-powered counterparts.

The Model 3 in China will be the first vehicle to receive the battery technology. Eventually, the higher density, lower-cost battery will make its way into other Tesla vehicles in other markets including the United States, according to sources cited by Reuters.

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Tesla’s Battery Day event is also expected to bring news that Tesla vehicles will be able to share energy back to the grid. The development would essentially make a Tesla car work like a Powerwall, the battery pack Tesla sells to consumers to store energy from solar panels for use at night or to keep the lights on during a blackout.

Source: CarAndDriver