{"id":21843,"date":"2017-11-13T16:51:58","date_gmt":"2017-11-13T21:51:58","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/tesla-and-lithium-ion-batteries\/"},"modified":"2017-11-13T16:51:58","modified_gmt":"2017-11-13T21:51:58","slug":"tesla-and-the-environmental-impact-of-lithium-ion-batteries","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/tesla-and-the-environmental-impact-of-lithium-ion-batteries\/","title":{"rendered":"Tesla and the environmental impact of lithium-ion batteries"},"content":{"rendered":"

Tesla\u2019s background and focus on climate change<\/b><\/span><\/p>\n

Tesla is one of the most innovative and impactful companies tackling climate change. Tesla\u2019s management clearly made tackling climate change a focus and the company has capitalized on the recent swell in public interest around the topic. As a result, Tesla has performed incredibly well; it has one of the most recognizable brands in the world and its stock price increased tenfold in the last 5 years [1].<\/span> More companies can and should follow Tesla\u2019s lead.<\/span><\/p>\n

Tesla\u2019s original mission statement was to \u201caccelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible\u201d [2]<\/span>. Tesla started with the Roadster in 2008, priced at a nearly unattainable $100,000. Purchased by eco-minded millionaires and celebrities, it gave the brand a high level of appeal such that when the product line expanded to include the Model S, the Model X, and most recently the Model 3, priced at $35,000, pent-up demand was unleashed which led to high volumes of sales [3]<\/span>. Tesla sold over 76,000 cars in 2016 compared to ~700 Roadsters in 2012 [4].<\/span> Tesla\u2019s focus on environmental sustainability, safety, and innovation made their electric cars hugely popular.<\/span><\/p>\n

In 2016, Tesla acquired Solar City and expanded its product portfolio to include solar panels, solar roof tiles, and battery storage. Batteries complement the generation profile of solar panels that charge only during the day when the sun is shining. Storing electricity for use on cloudy days and at night is necessary in order to provide the on-demand electricity consumers are accustomed to. Solar and battery storage are useful not only in the developed world. Elon Musk believes that when it comes to emerging markets, coupling solar and battery storage means \u201cyou can avoid building electricity plants at all\u201dand instead set up self-sustaining micro-grids in small villages that previously had no electricity [5].<\/span><\/p>\n

 <\/p>\n

Lithium-ion batteries; where Tesla could do more<\/b><\/span><\/p>\n

Lithium-ion batteries play a key role in Tesla\u2019s product portfolio. They power Tesla\u2019s electric cars and are the storage medium for Tesla\u2019s battery storage product, the Powerwall. To produce lithium-ion batteries, Tesla has built a massive manufacturing facility in Reno, NV called the Gigafactory which will dramatically increase the number of lithium-ion batteries on the market. By 2018, the Gigafactory will produce more lithium-ion batteries annually than were produced worldwide in 2013 [6].<\/span><\/p>\n

While Tesla itself is focused on addressing climate change with its core products, the environmental impact of its lithium-ion batteries should be closely examined and mitigated. <\/span><\/p>\n

Much of the world\u2019s lithium is extracted from brines beneath the deserts of South America and evaporated using the sun\u2019s energy. However as demand has grown, due in large part to Tesla, more and more lithium is mined in Australia by crushing rock and is then sent to China for processing in a more energy intensive cycle [7].<\/span> Mining is a notoriously energy intensive industry and many mines are powered using dirty electricity such as coal.<\/span><\/p>\n

Once a battery reaches the end of its life, there is recycling and disposal to be considered. Currently, over 90% of lead-acid batteries used in typical gasoline-powered vehicles are recycled. Compare that to less than 5% of lithium-ion batteries. Experts project 11m tonnes of lithium-ion batteries will be discarded between 2017 and 2030 [8]<\/span>. These batteries will need to be transported to recycling facilities around the world to be processed, further contributing to their negative environmental impact. Transporting batteries from Australia to Europe resulted in an increase of global warming potential of ~45% [9]<\/span>.<\/span><\/p>\n

 <\/p>\n

Conclusion and considerations<\/b><\/span><\/p>\n

Tesla is leading the way in terms of introducing new clean transportation and clean energy products to market. That said, lithium-ion batteries are a key ingredient in both Tesla\u2019s cars and Powerwalls and currently cause significant environmental harm. Tesla should be thinking ahead to when the first wave of lithium-ion batteries reach end-of-life. It seems as though they are already planning to do onsite recycling of lithium-ion batteries at the Gigafactory,<\/span> however they should be investing in building additional battery recycling sites so as to reduce transportation costs [10]. Tesla could also work to provide renewable energy at lithium mines, perhaps by installing their own solar panels on-site, to reduce the carbon footprint of extracting lithium in the first place. Lastly, Tesla should publicize its work around battery recycling to inform environmentally-conscious consumers that they are making every effort to ensure lithium-ion batteries will have minimal impact on the environment.<\/span><\/p>\n

 <\/p>\n

Questions for discussion<\/b><\/span><\/p>\n

What else can Tesla do to reduce the environmental impact of lithium-ion batteries?<\/span><\/p>\n

Are there other emerging energy storage technologies that have less of an impact on climate change?<\/span><\/p>\n

 <\/p>\n

Word count:<\/strong> 769<\/p>\n

 <\/p>\n

Citations<\/strong><\/span><\/p>\n

[1] Google Finance [<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n

[2] Tesla, Inc., \u201cThe Mission of Tesla,\u201d [<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n

[3] Tesla, Inc., \u201cModel 3,\u201d [<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n

[4] Tesla, Inc., \u201cTesla Fourth Quarter & Full Year 2016 Update\u201d, accessed 12 November 2017.<\/span><\/p>\n

[5] Chelsea Gohd, \u201cElon Musk: 100 Gigafactories Could Power the Entire World\u201d, <\/span>Futurism,<\/span><\/i> [<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n

[6] Chelsea Gohd, \u201cElon Musk: 100 Gigafactories Could Power the Entire World\u201d, <\/span>Futurism, <\/span><\/i>[<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n

[7] Financial Times, \u201cElectric Car Growth Sparks Environmental Concerns\u201d, [<\/span>URL<\/span><\/a>], accessed 12 November 2017<\/span><\/p>\n

[8] Lizzie Wade, \u201cTesla\u2019s Electric Cars Aren\u2019t as Green as You Might Think\u201d, <\/span>Wired, <\/span><\/i>[<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n

[9] Anna Boyden, \u201cThe Environmental Impacts of Recycling Portable Lithium-Ion Batteries\u201d, <\/span>Research School of Engineering, The Australian National University<\/span><\/i>, 2016.<\/span><\/p>\n

[10] Amy Westervelt, \u201cTesla\u2019s new batteries may be harder on the environment than you think\u201d, <\/span>The Guardian,<\/span><\/i> [<\/span>URL<\/span><\/a>], accessed 12 November 2017.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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