Panasonic, a battery supplier from Tesla, wants to end cobalt in its battery cells for electric vehicles in two to three years, which would reduce costs and increase the company’s ability to keep up with the automaker’s high plans for global expansion .
In recent years, Tesla has really focused on producing electric vehicle batteries and obtaining materials for its cells in large quantities. The automaker also focused on battery longevity, in which cobalt assists in ensuring the stability and life cycle of each battery. However, cobalt is an extremely controversial mineral. It is usually mined in the Republic of Congo, where child labor is used, and many companies have tried to get rid of the cobalt in their cells. Panasonic is one of those companies, Nikkei Asia reported.
Shawn Watanabe, head of technology and energy manufacturing at Panasonic in Japan, detailed his company’s plan to extract cobalt from its cells during a virtual session for the Consumer Electronics Show, which is the world’s largest electronics and technology exhibition, on Wednesday. “In two or three years, we will be able to introduce a high energy density cell without cobalt,” he said.
Eliminating cobalt in cells would not only reduce the cost of cells, but also lower the price of electric vehicles. An EV battery is the most expensive part of the car and represents between 30 and 40% of the vehicle. Panasonic, which has been partnering with Tesla since 2014 and recently signed a new battery supply contract with the company headed by Elon Musk, assists in the operation of Tesla Gigafactory in Sparks, Nevada.
Ultimately, the cost of batteries is what really raises the price of EVs. Tesla worked tirelessly to discover the supply restrictions for EV cells and started to manufacture its own 4680 cell internally. The way to reduce costs is to mass-produce cells, which requires considerable material contracts, and Tesla is focusing on nickel for the future, not cobalt.
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“I would just like to emphasize again, any mining company out there, please mine more nickel,” said Musk during the company’s second quarter 2020 earnings conference call. “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive manner.”
Panasonic is adopting the same strategy, according to Celin Mikolajczak, VP of Battery Technology at Panasonic North America. “Reducing cobalt makes it more difficult for us to manufacture, but ultimately, it reduces the negative environmental impacts of batteries and reduces the cost.”
Panasonic is also trying to cut costs by recycling its batteries and materials. She recently joined JB Straubel, a Tesla founder who started Redwood Materials. “The materials we use are very valuable. We always recycle. It is a constant flow of raw materials and this can become an appreciable part of our supply chain, ”said Mikolajczak.