Tesla cutting cobalt in batteries13 Jun 2018 21:33
* LME Cobalt Price: https://tmsnrt.rs/2LpswXW
By Andy Home
LONDON, June 6 (Reuters) - If Elon Musk had his way, there would be no cobalt in any of the batteries powering the next generation of Tesla.
At the very least, "we think we can get the cobalt to almost nothing", he told analysts on the company's first quarter results call.
Panasonic, which supplies the batteries for Tesla's electric cars, is "aiming to achieve zero usage in the near future and development is under way", according to Kenji Tamura, who is in charge of the Japanese firm's automotive battery business.
The two companies are leading an industry race to reduce exposure to the metal even before the electric vehicle (EV)revolution truly builds momentum.
It's not difficult to see why.
The London Metal Exchange price of the battery input has already rocketed from under $30,000 per tonne at the end of 2016 to a current $86,750.
It could go even higher.
Cobalt supply is dominated by Democratic Republic of Congo, presenting a volatile cocktail of political, operational and ethical risk.
And cobalt from Congo is dominated by China, which has locked down supply chains to secure its own fast-growing battery sector.
For relative newcomers, which means much of the European automotive sector, cobalt is the most problematic of all the ingredients in the metallic alchemy of an EV battery pack.
But given cobalt is one of the single most important determinants of a battery's stability and performance, can the problem be engineered away?
Graphic on LME cobalt price: https://tmsnrt.rs/2LpswXW
DRIVING OUT COBALT
Tesla and Panasonic are leading the EV field when it comes to minimising cobalt usage.
That's primarily because from inception they took a different chemical road to build batteries with the capacity and stability to power an electric vehicle.
Panasonic's nickel-cobalt-aluminium (NCA) technology has always used less cobalt than the nickel-cobalt-manganese (NCM) formula used by just about everyone else.
And the company has had 10 years experience since the 2008 launch of the original Tesla Roadster to work on its battery chemistry.
Benchmark Minerals, a specialist battery research company, estimates that over the last six years Tesla has reduced the average amount of cobalt used in its vehicles by 60 percent from 11 kilograms to 4.5 kilograms per car.
That may have been the easy bit. Eliminating it altogether is going to be much harder, Benchmark Minerals argues.
It's not going to mean much for everyone else, anyway, given the broader industry adoption of NCM battery chemistry.
NCM battery-makers have already begun reducing the amount of cobalt used but it is very much work in progress.
The original NCM chemistry used a formula of one part nickel, one part cobalt and one part manganese, or 1:1:1 as it is termed in battery industry jargon.
That has already evolved to 5:2:3 (five parts nickel, two cobal