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Cobalt cannot be completely eliminated and replaced in a short period of time in ternary materials, but low cobalt and cobalt free technologies enhance the bargaining power of downstream power lithium batteries for miners. Therefore, taking advantage of the low price period, global leading lithium battery materials, batteries, and automotive companies such as Samsung SDI, Umicore, SKI, Tesla, and BMW have all locked in their respective cobalt raw material long-term alliances. However, if there is a significant increase in cobalt prices in the future, it will still lead to an acceleration of the process of low cobalt and cobalt free downstream power fields, shifting towards a cobalt free material system.
In order to prevent instability of the source material, the industry has been exploring the minimum limit of cobalt content in ternary materials.
Ternary lithium-ion batteries remain mainstream in the market
At present, the mainstream batteries on the market are Tesla's ternary lithium-ion batteries and BYD's lithium iron phosphate batteries. The biggest difference is that the positive electrode material of the former is nickel cobalt aluminum (or manganese), while the latter is lithium iron phosphate. Due to the presence of cobalt, the counterfeiting of ternary batteries is generally higher than the latter. But due to its high energy density, its safety may be slightly worse.
Compared to ternary lithium-ion batteries, lithium iron phosphate batteries have a fatal drawback. Due to differences in chemical properties, the energy density of ternary lithium-ion batteries is about 70% higher than that of iron lithium-ion batteries, so vehicles equipped with ternary lithium-ion batteries generally run farther and faster. On the entire vehicle, Tesla's performance will also be better than BYD's.
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