Panasonic Corp, a battery cell supplier to electric carmaker Tesla, said on Wednesday that it aims to develop automotive batteries that do not involve the use of cobalt.
The Japanese technology giant plans to cut down on cobalt usage due to soaring prices of the mineral, Reuters reports.
“We have already cut down cobalt usage substantially,” Kenji Tamura, who is in charge of Panasonic’s automotive battery business, was quoted as saying at a meeting with analysts.
“We are aiming to achieve zero usage in the near future, and development is underway.”
Top battery makers are scrambling to reduce cobalt content in lithium-ion batteries as prices of the mineral have multiplied over the recent years, with supply shortage fears adding to the problem.
Panasonic is the exclusive battery cell supplier for Tesla’s mass-market Model 3 sedan, producing the cells at a joint-venture facility in Nevada.
In addition to the effort to reduce rare mineral content in its batteries, Panasonic is also trying to sign contracts with clients “in a way that allows the company to hedge risks of surging prices of the materials,” said Yoshio Ito, the chief of Panasonic’s automotive business.
REUTERS
