Cobalt-light batteries give cost advantage to Tesla

Bloomberg

Tesla Inc.’s lead in battery technology gives it a cost advantage that may last for several years and help US electric-car maker face down an onslaught of new competition, according to research from Bloomberg New Energy Finance.
Batteries made by the US manufacturer and its Japanese partner, Panasonic Corp., require less cobalt, the metal whose price has shot up with demand for electric cars.
Chief Executive Officer Elon Musk said Tesla is targeting a cell-level price of $100 per kilowatt-hour in 2018 and battery-pack costs below that level within two years. BNEF doesn’t expect average pack prices to drop below $100 until 2025.
“If Tesla reaches its pack-price milestone, it will be several years ahead of our industry benchmark,” BNEF said.
The researchers noted that others made batteries for as low as $120 per kilowatt hour in 2017, “which suggests that Tesla is not alone in being ahead of the curve.”
Tesla hasn’t been able to extend its US dominance in electric cars to other regions, and is now under threat from new models coming from Volkswagen, Daimler, Volvo Cars and BMW.
The competition will be toughest in the SUV and crossover segment, where the Model X goes up against new models from JLR ’s I-Pace, Audi’s coming E-Tron and the Hyundai Kona, due in 2019.