Telsa’s owner Elon Musk is predicting that his company could produce a cut-price self-driving car within three years, thanks to new technology slashing the cost of batteries.

In a “Battery Day” presentation from San Francisco, AFP reports he joined the head of his power team to lay out battery design, material and production innovations that combine to cut the cost per kilowatt hours by 56 percent.

The report says Musk and energy engineering senior vice president Drew Baglino explained the technical details of Tesla’s overhaul of making batteries, from raw materials and design to building finished cells into the very structures of cars. Innovations, some still in development, were expected to pack more energy into battery cells, cut production costs and dramatically extend battery life.

Yahoo News says that Musk talked about a car costing $25,000 (£19,500) adding that Musk and Baglino were adamant that a shift away from fossil fuels toward sustainable energy is a vital part of tackling climate change. “It’s really important that we take action,” Baglino said.”We’re going to run out of these fossil fuels, so let’s just move to the future.”