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Change in battery strategy: Tesla wants to install new types of batteries

The previous lithium-ion batteries that Tesla installed in its cars contained cobalt. The mining of the raw material is not only expensive, but also often goes hand in hand with child labor. The US electric car manufacturer is therefore in discussion with the Chinese battery manufacturer CATL about cobalt-free batteries.

Tesla is pushing battery technology forward and apparently wants to use batteries in China for the first time that can do without the heavy metal cobalt. In addition, the US electric car pioneer is in advanced talks with the Chinese battery manufacturer CATL, said people familiar with the matter.

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Cobalt is required for the lithium-ion batteries that have been common until now, which is not only expensive due to the energy-intensive dismantling. Since the deposits are predominantly in the Congo and the raw material there is also mined under questionable conditions such as child labor, it is also highly controversial. Other manufacturers are therefore also looking for alternatives.

The talks with CATL (Contemporary Amperex Technology) started Tesla more than a year ago with the aim of receiving lithium iron phosphate batteries. One of the initiates said that these are a two-digit percentage cheaper than conventional batteries. Tesla and CATL declined to comment.

With the installation of the new cells, Tesla could cut costs and offer electric cars cheaper. The Silicon Valley group opened its first auto plant outside of the United States in Shanghai within a few months. Delivery of Model 3 vehicles has recently started there. Tesla is currently seeking approval from Chinese authorities to build vehicles of this model with a longer range.

Musk plans to present battery strategy in April

Manufacturers of electric cars generally use nickel-cobalt-aluminum batteries or those with nickel, manganese and cobalt because of the higher energy density. The energy density is decisive for how long an electric car can run on a battery charge. In order to increase the density and safety of its lithium iron phosphate batteries, CATL was working on its cell-to-pack technology, it said. With this technology, the cells are integrated directly into the battery pack.

So far, the batteries have initially been installed in modules, which in turn are assembled into battery packs. It is not clear to what extent Tesla intends to use cobalt-free battery cells, one of the insiders said. The carmaker did not intend to do without the lithium-ion cells previously used. Tesla boss Elon Musk plans to present his future battery strategy at an event in April.

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