http://www.mining.com/reduced-cobalt-electric-car-batteries-delay...

http://www.mining.com/reduced-cobalt-electric-car-batteries-delayed-amid-price-fall/


Reduced cobalt electric car batteries delayed amid price fall

Frik Els | about 21 hours ago |
Tesla claims its nickel-cobalt-aluminum (NCA) technology has cobalt content equivalent to 811.

This month provided further evidence that cobalt bulls may rest a little bit easier – rapidly rising global battery production volumes should more than make up for ongoing cobalt thrifting.

South Korean battery giants SK Innovation and LG Chem have both announced delays in the roll-out of NCM 811 batteries which were promised for the second half of this year. SK will stick to 622 batteries for EVs like the popular Kia Niro while using 811 for energy storage units. LG Chem will use 811 in e-buses only.

Simon Moores, MD of Benchmark Mineral Intelligence, a provider of price information and research on battery supply chains, says the firm has been "consistently advising that 811 cathode usage in electric vehicles is some years away from major adoption."

"Our forecast models begin seeing a material impact of 811 Cathode after 2021 so any expectation for this high nickel, low cobalt technology in the next 18 months was misplaced.

"Poorer life cycle, reduced safety and misrepresented relative cost savings are all major concerns for electric vehicle producers.

"811 will have its day, but it won’t be before 2021.”

The London-HQ firm forecast 811 will not exceed 5% of total NCM cathode production until after 2020 and reducing the cobalt would not necessarily lower cost:

Current technology dictates that 811 cathodes need to be produced in an inert environment as to prevent any reaction with the atmosphere. Therefore, any new cathode plant producing this material will need to build a new, dedicated, inert atmosphere, production line specific to 811.

Benchmark calculates that even with the most ambitious roll-out of 811 battery technology – 40% market share by 2026 – output of battery grade cobalt would have to more than triple from last year’s production of 50,000 tonnes (out of total cobalt production of just over 100,000 tonnes)