Brand-new reports coming from Nasdaq online and other sources show electric car maker Tesla ready to undertake changes to its battery programs that could change the equation for the cost of its vehicles.
Specifically, Tesla is reportedly set to offer cobalt-free LFP batteries as an alternative to the type of NMC batteries powering current models.
This, analysts say, would dramatically decrease the price of production and, assumedly, the sticker price, on vehicles that are widely seen in many markets as unaffordable.
“Why aren’t electric cars everywhere already?” wrote Akshat Rathi last year at Quartz. “It’s because batteries are expensive, making the upfront cost of an electric car much higher than a similar gas-powered model. And unless you drive a lot, the savings on gasoline don’t always offset the higher upfront cost. In short, electric cars still aren’t economical.”
Even before this innovation, though, Tesla has been selling its cars pretty handily, for example, a total of 11,000 units shipped to the Chinese market in the month of August.
Beyond the cost of lithium batteries, there are bigger concerns about sustainable lithium mining.
“One of the side effects of lithium mining is water pollution: the process of mining can affect local water supplies, potentially poisoning communities,” writes Nicole Karlis at Salon. “Yet chemical leakage is also a major concern when it comes to lithium mining. The lithium carbonate extraction process harms the soil, and can cause air pollution. There are also concerns around how to recycle it.”
Will Tesla also invest in changes that will make its practices more sustainable? Without this kind of research, the company may run up against a pretty decisive glass ceiling even if it makes its products cheaper. On the stock side, following a 5-1 split and subsequent drop in value, TSLA is back to over 80% of 6-month highs, re-affirming the company’s equity as a long-term gainer.
