Sumitomo To Boost Production Of Nickel Cobalt Aluminum Oxide As It Targets Supply Deal For Tesla Model 3

2 years ago by Steven Loveday 8

Major Projects in 2015, 3-year Business Plan

Major Projects in 2015, 3-year Business Plan

With goals to supply Tesla with battery materials for the upcoming Model 3, Sumitomo Metal Mining (SMM), is boosting production.

Panasonic lithium-ion battery cells

Panasonic lithium-ion battery cells

The company recently devised its 3-year plan for expansion, and is anticipating a 38% increase, from 1,850 tons a month to 2,550. The company mines the nickel material for Panasonic. Panasonic builds the cells for Tesla. SMM previously increased production for Tesla’s Model S.

Sumitomo has multiple initiatives for increased production. It is the only company in Japan refining E-nickel and cobalt. Production processes are being revamped to allow for maximized performance and stability.

SMM also refines nickel hydroxide for nickel metal hydride batteries used by Toyota. The company has an additional refinery in the Phillippines. The plan is for this location to see a 20% increase in production.

Source: SMM, Green Car Congress

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8 responses to "Sumitomo To Boost Production Of Nickel Cobalt Aluminum Oxide As It Targets Supply Deal For Tesla Model 3"

  1. Anon says:

    Yes. Yes. Yes.

  2. tftf says:

    Who sub-supplies Panasonic in China?

    http://asia.nikkei.com/Business/Companies/Panasonic-to-build-green-car-battery-plant-in-China

    Panasonic supplies EV batteries not just to Tesla, see link above.

  3. ffbj says:

    I like copper, aluminum, and nickel, partly due to, what I believe will be an increase in prices for these industrial metals as demand rises. I would not bet the farm, nor put all my eggs in one basket, but diversification is an important principle.

  4. pjwood1 says:

    Amazing Toyota is still getting away with large, heavy ~1kwh NiMH batteries in the Prius.

    1. Robb Stark says:

      Prius Eco models have lithium ion batteries.

    2. sven says:

      Only the lowest trim level, the Prius 2 has a NiMH battery.

      The Prius 2 ECO, Prius 3, Prius 3 Touring, Prius 4, Prius 4 Touring all use a Li-ion battery.

  5. Spec says:

    These increased investments in battery materials should help bring down costs.

  6. GeorgeS says:

    article:
    “SMM also refines nickel hydroxide for nickel metal hydride batteries used by Toyota. The company has an additional refinery in the Phillippines”

    The Morenci project appears to be near me in Arizona. Morenci is a mining town in Arizona. Good deal. Less transport costs to the giga factory

    http://www.businesswire.com/news/home/20160214005059/en/Freeport-McMoRan-Announces-Agreement-Sell-13-Interest-Morenci