Wednesday, October 20, 2021

"Tesla will only use iron-based batteries for standard model EVs" (TSLA)

From TechCrunch, October 20:

Tesla said Wednesday it will use iron-based batteries for its standard Model 3 and Model Y models across global markets. The update, provided in the company’s third-quarter earnings report, confirmed hints that Tesla CEO Elon Musk has been dropping for months about the cheaper battery chemistry’s growing role in the company’s product line-up.

Lithium-iron-phosphate (LFP) batteries use an older, cheaper battery chemistry and are popular in China. Outside of China, EV batteries are predominately nickel-based — either nickel-manganese-cobalt or nickel-cobalt-aluminum. But beyond cost savings, LFP battery cells are attractive because they are not dependent on ultra-scarce raw materials like cobalt and nickel. Notably, Tesla CFO Zach Kirkhorn confirmed during an investor call Wednesday that the company has seen pricing impacts to nickel and aluminum....

....MUCH MORE

Related, May 17, 2021:
"Tesla in talks with China's EVE for low-cost battery supply deal -sources" TSLA)
Well I guess Tony Stark Elon Musk is now officially Iron Man....

And July 28, 2021:
"What Tesla’s bet on iron-based batteries means for manufacturers" (TSLA)

Back in 2018 we posted "Batteries: Lithium-Iron may be Competitive With Lithium-Cobalt" but with so many technologies that failed to scale-up over the years we are a little bit jaundiced about wasting the reader's time chasing every rabbit that pops up.
However, if this works, Elon may have found the chemistry for the next generation of Powerwalls.

Also from 2018:
"Ten years left to redesign lithium-ion batteries"

This time frame is not too restrictive.
Tesla and their battery partner, Panasonic, have removed a lot of the cobalt (60%) from their battery recipe and are on their way to zero cobalt over the next couple years.
So, more interesting than any time pressure is the potential spur to creativity on the question of alternative chemistries.
From the journal Nature, July 25:...

One more from 2018—apparently a great year for Iron Age types while I kept writing Bronze Age on my checks. ("Dad, what's a check?"):

Twenty Month Payback for Tesla 100-MW Utility Scale Battery Storage System
Elon (and Panasonic) may have just found another multi-billion dollar business.
Going forward the chemistry probably won't be Lithium ion, maybe molten-salt or iron based, but the fact TSLA can now pitch this kind of payback probably heralds the beginnings of lithium rush 3.0, or at least the promotion thereof....

Be all that as it may be, Elon is covering his flank with nickle:

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