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The Cobalt Cliff Will Crush Tesla's Business And May Restore Some Sanity To The EV Industry
Seeking Alpha ^ | 9/29/2017 | John Petersen

Posted on 10/27/2017 11:57:21 AM PDT by catnipman

the DOE and everybody in the auto industry pegged their EV hopes and dreams on lithium manganese oxide, or LMO, and lithium iron phosphate, or LFP, batteries. The reasons were simple. Both chemistries had great performance profiles for EVs and both chemistries were made using cheap and abundant raw materials – lithium, manganese and iron.

The sole renegade was Tesla, which planned to use consumer grade cells and a nickel-cobalt chemistry instead of more costly automotive grade LMO and LFP cells. Tesla's theory, which had more than a touch of genius, was that using consumer grade cells would allow it to over-build its battery packs to improve safety and slow cell degradation while pitching a 300-mile range with neck snapping acceleration as major advantages, even though most Tesla owners would crawl through city traffic with the rest of us and average less than 35 miles of daily driving.

While Tesla's electric muscle cars have always been energy, emissions and economic nightmares, the sales pitch resonated with one percenters who were drawn to Tesla's richly subsidized eco-bling like moths to a flame.

The consumer response was so strong that most players in the EV industry are moving away from LMO and LFP batteries and embracing high-energy nickel manganese cobalt, or NMC, batteries.

The EV industry's transition away from cheap and abundant raw materials in favor of costly nickel and cobalt will not end well.

Manufacturing 100 million EVs per year to completely replace ICE technology would require about 800,000 TPY of refined cobalt and exhaust planetary reserves in less than seven years.

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: cliff; cobalt
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Very interesting article - through analysis of why industry wants cobalt batteries - but not near enough cobalt for the pipe dreamers of powerful, long-range EVs.
1 posted on 10/27/2017 11:57:22 AM PDT by catnipman
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To: catnipman

The shift to cobalt will no doubt delight folks in the Congo, the ones who aren’t dead from ebola, marburg, starvation, or internecine genocide.


2 posted on 10/27/2017 12:00:58 PM PDT by IronJack
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While Tesla's electric muscle cars have always been energy, emissions and economic nightmares, the sales pitch resonated with one percenters who were drawn to Tesla's richly subsidized eco-bling like moths to a flame.

Good line.
3 posted on 10/27/2017 12:05:00 PM PDT by Gene Eric (Don't be a statist!)
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To: catnipman

Anything that requires a socket to plug to a wall...is an electrical appliance. Not a car.


4 posted on 10/27/2017 12:11:18 PM PDT by beergarden
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To: catnipman

It would be decades and maybe never before EVs could largely replace IC vehicles even with a lot of infrastructure in place. The lesser flexibility of EVs would make them less attractive as personal transport should IC vehicles be severely restricted. Mass transit would be more attractive, as intended, and the number of personal vehicles manufactured would decline.


5 posted on 10/27/2017 12:12:08 PM PDT by jjotto ("Ya could look it up!")
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To: Gene Eric

When the Elon-Musk-cum-Tesla bubble finally bursts (which it surely will very soon,) St. Elon will make Malcolm Bricklin look like little more than a penny ante barker in some third rate carnival. Sit back everyone and enjoy the show that is unfolding before us all.


6 posted on 10/27/2017 12:15:43 PM PDT by Autonomous User (During times of universal deceit, telling the truth becomes a revolutionary act.)
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To: catnipman

“800,000 TPY of refined cobalt and exhaust planetary reserves in less than seven years”


Malthusian nonsense and if one could make any sense out of that, it would only means exhaustion of “current proved reverses” and not “planetary reserves” (which nobody knows, since reserves depend on price and technology).

The rest of the article lacks as much credibility. The author is implying the market prefers a costly battery technology instead of its cheap and abundant counterparts, either he is dumb, or he is intentionnally telling just half of the story.
If Tesla fails and the sooner the better, it is because the EV is cr.p and its crony capitalism business model is unsustainable, not because of the battery technology choice.


7 posted on 10/27/2017 12:15:48 PM PDT by miniTAX
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To: catnipman

They should refrain from scare tactics.


8 posted on 10/27/2017 12:18:25 PM PDT by TexasGator (Z)
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To: miniTAX

The author exhibits significant Musk Derangement Syndrome, more insults than facts.


9 posted on 10/27/2017 12:21:36 PM PDT by ctdonath2 (It's not "white privilege", it's "Puritan work ethic". Behavior begets consequences.)
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To: catnipman

I am not sop sure that the battery technology will change over the next ten years and that Tesla and the others will change technologies as needed as cobalt becomes too rare or too expensive. A LOT of folks are working on better battery technology and the right breakthrough (e.g. superconductivity) will put the whole market upside down regardless of the availability of cobalt.

Also, outside of places like China (where they can easily be mandated without regard for the public will), the electric vehicles may not sell well enough to meet projected numbers. It is all guesswork at this point.


10 posted on 10/27/2017 12:30:20 PM PDT by Dr. Sivana (There is no salvation in politics.)
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To: beergarden
>>"Anything that requires a socket to plug to a wall...is an electrical appliance. Not a car."

Viewing your post, I thought, "Seems like a smart guy.", then I saw your handle and was convinced.

Muscle cars and beer: Making America Great Again.

11 posted on 10/27/2017 12:31:08 PM PDT by Aevery_Freeman (Why do those with the least to say do so loudly and often?)
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To: miniTAX

Regardless of the supply claim, I thing the point was that making cars at the same rate as today with gas engines is unattainable, as only some 41,000 TPY is available, less than 5% what is needed to make cars at he same rate.


12 posted on 10/27/2017 12:46:08 PM PDT by PIF (They came for me and mine ... now it is your turn ...)
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To: catnipman

There are some misunderstandings in this article. The neck-snapping acceleration is a trait of any electric vehicle with a sufficiently large electric motor driving the drive wheels, it has nothing to do with the battery chemistry. There are resto-mod electric ‘68 Mustangs being remanufactured and sold out of I believe Texas that use lithium iron phosphate batteries that will absolutely burn the rear tires off.

Regarding the reasoning of Tesla as far as going with nickel-cobalt my understanding was energy density and speed of recharging, even though there is some risk of overheating, fire and explosion, whereas there is no such risk with lithium iron phosphate, it just needs to be generally kept above freezing and below very hot outside temperatures for overall performance reasons, and charging below freezing will damage the battery so they’re typically placed in conditioned space rather than exterior.

I think Tesla perhaps made an error in going with this battery chemistry but the rest of the industry is using it too, by and large. You only run into LFP in RV, Marine and electric scooters or bicycles at present. I think it’s the superior battery due to being more inherently stable and not a fire risk, with the other considerations being negligible but I’m not building and selling electric cars so what do I know, I just researched the matter for an RV I’m updating.


13 posted on 10/27/2017 1:04:19 PM PDT by RegulatorCountry
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To: Dr. Sivana

“I am not so sure that the battery technology will change over the next ten years and that Tesla and the others will change technologies as needed as cobalt becomes too rare or too expensive”

i sure hope they make more progress than they’ve made since Alessandro Volta invented the first battery 200 years ago ...


14 posted on 10/27/2017 1:09:17 PM PDT by catnipman ( Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: beergarden
"'Anything that requires a socket to plug to a wall...is an electrical appliance. Not a car."

LOL! This 'electrical appliance' has four-wheel drive and does 0-60 in 2.5 seconds!


15 posted on 10/27/2017 1:15:30 PM PDT by TexasGator (Z)
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To: catnipman

It’s come a considerable way, here’s a company named Volta Systems oddly enough, that is specializing in mobile battery banks. They’re using the same battery chemistry as Tesla, which runs counter to most that use LFP, but they do have a good comparison with lead-acid batteries and even AGM golf cart batteries.

http://www.voltapowersystems.com


16 posted on 10/27/2017 1:15:47 PM PDT by RegulatorCountry
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To: catnipman

17 posted on 10/27/2017 1:16:09 PM PDT by fishtank (The denial of original sin is the root of liberalism.)
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To: catnipman

Gee, if you increase usage of anything by a factor of 100x...you may run out of materials or make them prohibitively expensive....gee...novel concept...

Any time diesel is cheap and gas gets expensive, people have a knee jerk reaction and buy a bunch of diesel cars. Next thing you know, diesel is more expensive than gas...because the demand/supply chain got severely altered!

Bueller, Bueller.....


18 posted on 10/27/2017 1:19:19 PM PDT by Professional
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To: Aevery_Freeman

“Muscle cars and beer: Making America Great Again. “

Fastest Vette: 0-60 3.0 seconds.

Tesla S: 0-60 2.5 seconds.


19 posted on 10/27/2017 1:20:00 PM PDT by TexasGator (Z)
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To: jjotto

It would be decades and maybe never before EVs could largely replace IC vehicles even with a lot of infrastructure in place. The lesser flexibility of EVs would make them less attractive as personal transport should IC vehicles be severely restricted. Mass transit would be more attractive, as intended, and the number of personal vehicles manufactured would decline.


Also, if the EVs increase and take ICs off the road, the price of gas will come down and make the decision to switch to EV less appealing.


20 posted on 10/27/2017 1:20:26 PM PDT by samtheman (Clinton colluded with the Russians to falsely accuse Trump of colluding with the Russians.)
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