First Cobalt questions Tesla move to replace cobalt in next-gen batteries
Battery Day reaction from First Cobalt, September 23, 2020
Toronto’s First Cobalt salutes Tesla’s plan to vertically integrate its battery business but believes removing cobalt from its battery recipe mix will be difficult - and definitely not desirable.
“The limiting factor for growth of the EV market is cell production, from the mine to cell manufacturing,” said CEO Trent Mell in a statement. “Tesla's strategic decision to vertically integrate into battery manufacturing is a harbinger of things to come and a warning to other EV manufacturers on the strategic importance of controlling supply chains.”
Opting to replace cobalt with iron, pure nickel, or nickel-magnesium mixes, however, ignores conventional wisdom surrounding the direction of next-gen battery tech, Mell said.
“Despite years of trying to remove cobalt from batteries, it has proven to be a formidable challenge owing to its importance in keeping batteries safe and extending the life of cells,” he said. “Battery manufacturers have instead opted to lower the amount of cobalt in a cell to decrease the cost while preserving the integrity of the battery. This is the battery evolution trend almost all market experts are predicting, with the nickel-cobalt-manganese (NCM) cathode remaining the dominant chemistry.”
First Cobalt owns the only permitted cobalt refinery in North America, Power Materials notes.
“We remain steadfast in our belief that cobalt will continue to be an essential component in nickel-rich batteries,” Mell said. “The timeline from concept to commercialization of any new battery technology will take ten or more years. We note recent market commentary on Tesla having concluded a long-term cobalt supply deal, which would be at odds with today's pronouncements. Most of Tesla's competitors are developing their electrification plans on the basis of NCM battery technologies.”
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