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Tesla Could Be Hogging Batteries and Causing a Global Shortage, Says Report (gizmodo.com)
According to a report from the Korea news outlet ETNews, Tesla's solution to fixing a manufacturing bottleneck responsible for a $619 million loss last quarter could be causing a global battery shortage. Panasonic reportedly gave most of its cache of batteries in Japan to Tesla so that the automaker and Gigafactory 1 energy-storage company could keep up with its ambitious production schedule. Gizmodo reports: In early October, Tesla struggled with a "production bottleneck," but by the end of the month, Panasonic stated it would increase battery output at the Gigafactory, now that it understood the issues that led to the bottleneck and could automate some of the processes that had been done by hand. But this likely did not help Tesla fix any immediate shortage issues. ETNews claims that Panasonic is coping with the shortage by shipping batteries in from Japan. And many Japanese companies in need of cylinder batteries have turned to other suppliers like LG, Murata, and Samsung -- but those companies have not been able to meet the demands. Reportedly, companies that had contracts before 2017 aren't affected by the shortage, but several other manufacturers have not been able to place orders for batteries, and won't be able to order more batteries until the middle of next year.
Fuck everyone else. It's just good business.
As we shift from fossil fuels to batteries, we will have to ramp up production. Tesla is causing that to happen NOW, rather than in the future when it could be even more disruptive. This is a Good Thing. We need to produce more lithium, and more cobalt. We need to make more batteries, and make them cheaper and more efficiently. By bringing the inevitable supply problems forward, innovators will be incentivized to find solutions.
Let's see: company (Tesla) has more need for materials furnished by a partner company(Panasonic), so orders more and partner company supplies the extra materials. Other companies WITHOUT existing supply contracts whine about being unable to buy batteries from partner company. Isn't this at some level how basic capitalism works? It's not like there aren't other battery suppliers and - yes! - demand is skyrocketing. Welcome to the real world.
As Electrec notes, it's almost impossible that this report is correct. Model 3 uses 2170 cells, not the standard 18650s, while Model X and Model S have always used imported cells, so nothing has changed there.
Pinkypants -- my favorite!
You can sell significant numbers of a product, beyond your wildest dreams, and still be losing money.
Boeing has sold 1287 of its 787 Dreamliner series aircraft, has delivered 625 and was still losing money overall (as in deferred program debt was still rising) until earlier this year (when they managed a slight reduction). Boeing isn't forecast to make any actual profit on its current order book.
In the commercial aviation world, 1000 sales of a large aircraft is a huge success, usually (see 777, 747, 767, A330). But then, usually, these programs have their production and R&D debt paid off in the first few hundred airframes....
Tesla is in the same boat - massive (relatively) up front costs, coupled with significant production issues which means debt is still rising rather than being recouped.
They will get there, but they aren't there yet.
What's the environmental impact of this battery manufacturing?
Compared to extracting oil from the Alberta tar sands, the impact is modest. Lithium is extracted from salt flats and underground brine, which are not ecological hotspots. Cobalt is mostly a byproduct of open pit copper and nickel mining, and little mining is done specifically to extract cobalt.
If they're being shipped from Japan to the US, then they'll have a higher carbon footprint due to being shipped across an ocean than batteries manufactured locally, no?
Not really. Ocean transport is very efficient, and adds little to the carbon footprint of these vehicles.
Are vehicles that use batteries like this truly more environmentally friendly
Yes, by a big margin.
Wait, so the claim is that Tesla could be CAUSING a shortage?
How are they causing a shortage? By buying up all the batteries they can get.
Why are they buying up batteries? To eliminate their manufacturing problems.
What were the manufacturing problems they were having? They couldn't get enough batteries.
Oh yeah, that makes total sense. It's not a battery shortage causing Tesla to buy up batteries....it's Tesla buying up batteries that is causing a shortage.
But the truth wouldn't generate a click bait headline
Ocean shipping is dirty as hell!
Container ships burn high sulfur bunker fuel, which produces lots and lots of sulfates, which are nasty pollutants ... ON LAND. But at sea, the sulfates settle onto the surface of the sea, where they have a negligible effect since the ocean already contains quadrillions of tons of sulfur.
Sulfur is a pollutant in the same way that salt is a pollutant: It depends on where you put it.
The Daily Mail caring about the environment?
They don't care. The whole point of the article is to promote environmental nihilism and apathy. If 16 ships pollute more than a billion cars, and wind turbines kill birds, and bicyclists run over endangered insects, then clearly everything is equally bad and nothing matters and readers can continue to drive their SUVs guilt free.
Cobalt is mostly a byproduct of open pit copper and nickel mining, and little mining is done specifically to extract cobalt.
While true, there is more to the story. 15% of US cobalt production is already from recycling. Also there is the Idaho Cobalt Project (ICP) that already has permits for a primary-source cobalt mine in Idaho, which should go online imminently. It is owned by a Canadian mining company. They're expecting 1500 tons/yr for 12.5 years.
The most important thing though is that cobalt is totally recoverable, in the future most of it will come from recycling.
Monopolistic? Don't be an idiot. It's basic supply and demand. And, Tesla has a monopoly on exactly nothing, except maybe a trade secret on generating fanboy hype. Neither does Panasonic.
There is simply not enough battery manufacturing to meet the current demand. So Tesla is locking up the supply they need by working with their manufacturing partner in a very legal and straightforward way that hundreds of businesses have done to obtain the materials they need, for basically all of history. And guess what? If demand is greater than supply, some other company can either outbid Tesla for the supply, or wait for more manufacturing to be built to increase the available supply. Just like any other product or material in any other market, ever.
Oh, I forgot - we are talking about Tesla, so OMG evil! Bad! Almost as bad as Apple, because reasons!
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